A cyber insurance policy also known as the cyber liability insurance or cyber risk insurance coverage helps organisations to mitigate risk by offsetting costs involved with recovery after a cyber-related security breach or similar event takes place.
Most sophisticated organisations can deploy the best cybersecurity protocols in place and still cannot guarantee 100% security. However, businesses can ensure this protection with a cyber insurance policy. The rise in cyber-crimes indicates that businesses are seeking a need for cyber insurance.
But what does this policy cover? Cyber insurance includes expenses related to first-party damage as well as claims made by third parties in the following scenariosData breach and privacy management
The insurance company covers the costs associated with the management of an incident related to cyber-crime. The covered expenses here include the cost of
• Data subject notification
• Call management
• Credit checking for data subjects
• Legal costs
• Court attendance and regulatory finesMultimedia and media liability cover
This insurance covers the third-party damages including specific defacement of website and intellectual property rights infringement.
• Extortion liability cover:The cyber insurance policy also covers the losses due to a threat of extortion and the professional fees related to dealing with the extortion.
• Network security liability:This may include the third-party damages as a result of the denial of access, costs related to the theft of data on third-party systems etc.
In some cases, some of the cyber liability covers may overlap with other policies like professional indemnity, but a decent cyber insurance policy always ensures that the cyber risks are adequately catered for.