Cyber insurance is a type of insurance that businesses can buy to protect themselves from possible cyber attacks. The policies can be customized to fit the needs of the business, and they often cover costs related to data breaches, including forensic investigations, notifications to affected customers, and credit monitoring services.
Cyber insurance is an important investment for any business that relies on technology, and it's something that every company should consider. Here's what you need to know about cyber insurance, and why you need it.
Cyber insurance is a type of insurance coverage that protects businesses and individuals from losses incurred as a result of cyber attacks. It can cover a wide range of risks, including data breaches, hacking, and malware infections.
Cyber insurance can help to offset the costs associated with recovering from a cyber attack, such as the cost of hiring a professional to clean up malware, or the cost of replacing lost or stolen data. It can also help to cover the costs of lawsuits resulting from a data breach.
While cyber insurance is not required by law, it is becoming increasingly common for businesses to purchase coverage as the threat of cyber attacks grows. Many banks and other financial institutions now require their customers to carry cyber insurance, and some businesses are beginning to include it in their employee benefits packages.
Cyber insurance policies can vary widely in terms of what they cover. Some policies may only provide coverage for data breaches, while others may also cover cyber attacks that result in business interruption or theft of company assets.
In order to provide coverage, insurance companies will typically require certain security methodologies to be in place, such as multi-factor authentication (MFA) or phishing simulation and training, for example.
In order to pay out a claim, the insurance company will track down the source of the breach and, more importantly, the action steps taken by the business in the wake of a breach. Your cyber incident response plan will be critical in how the insurance company responds to the claim, in addition to any security measures that were implemented prior.
As with any policy, it is important to read the fine print so that you are aware of its limitations.