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<\/span><\/div><\/div><\/div><\/div><\/div><\/h3><\/span><\/div><\/div><\/div>\n <\/div><\/div>\n <\/p>\nCybersecurity insurance, also referred to as cyber insurance or cyber liability insurance, is insurance that\u00a0your\u00a0business can buy to reduce risks to\u00a0data loss. A cybersecurity insurance policy will transfer some risk to the insurance company for a fee.<\/p>\n<\/p>\n
While\u00a0all\u00a0types of insurance have been around for decades, cybersecurity insurance is\u00a0relatively new. Businesses that chose to buy cybersecurity insurance were early adopters. Given how cyber risks fluctuate, cybersecurity policies\u00a0must\u00a0change\u00a0and adapt\u00a0frequently. Underwriters have access to data that helps them calculate risk and set policy rates, premiums,\u00a0and coverage. For cybersecurity insurance, it’s not\u00a0that\u00a0simple. This hurdle is because cybersecurity insurance is new, and the data is limited.<\/p>\n<\/p>\n
1. It is an Extra Layer of Protection.<\/h3>\n<\/p>\n
Losing data through theft or compromise has the potential to harm an organization.\u00a0It can mean customers go elsewhere and cause\u00a0your business\u00a0a loss in revenue. What’s more, without cybersecurity insurance, your company could be liable for any damages that stem from third-party data being stolen or compromised.\u00a0Losing client data without a backup plan in place could be a disaster.<\/p>\n<\/p>\n
Cybersecurity insurance is essential if businesses want to protect themselves against cyber event risks, including\u00a0threats\u00a0linked to terrorism. In addition, coverage for cyber threats can help remediate cyber incidents\u00a0quickly and could save your business.<\/p>\n<\/p>\n
2. Anyone can be hacked!<\/h3>\n<\/p>\n
Back in 2011, the PlayStation Network suffered a breach by hackers. This breach exposed the personal data of 77 million users. It meant that PlayStation users were unable to access the service for over three weeks. In terms of cost to Sony, there were over 171 million\u00a0dollars lost\u00a0due to this breach. Sony could have saved themselves some of the $171 million had they\u00a0secured\u00a0a cybersecurity insurance policy \u2013 but they didn’t. A subsequent court case ruled that their insurance policy only covered physical damage, which meant that Sony had to pay the costs of the losses from the cyberattack.<\/p>\n<\/p>\n
3. How\u00a0It\u00a0Works.<\/h3>\n<\/p>\n
Many insurance providers that provide\u00a0coverage\u00a0like commercial property insurance or business liability insurance will also provide cybersecurity insurance. Most cybersecurity policies cover the first party (losses that impact a company directly) and third-party losses (losses by other people caused by a cybersecurity incident, depending on their relationship to the organization).<\/p>\n<\/p>\n
Cybersecurity insurance will help cover any losses resulting from cyber incidents and events. What’s more, it can also help with costs linked to remediation, such as paying for legal assistance, crisis communicators, investigators, customer refunds, and\u00a0loss to\u00a0customer\u00a0accounts.<\/p>\n<\/p>\n
4. Who should get\u00a0Cybersecurity\u00a0Insurance?<\/h3>\n<\/p>\n
Companies who manage,\u00a0store\u00a0or create electronic data like contacts, sales,\u00a0or\u00a0credit card\u00a0info\u00a0will\u00a0benefit from cybersecurity insurance. E-commerce companies can\u00a0also benefit\u00a0from cyber coverage.\u00a0Besides losing money, downtime\u00a0from\u00a0a cyber event can potentially lose customers\u00a0and\u00a0sales.<\/p>\n<\/p>\n
In a similar vein, any company storing client information online will benefit from cybersecurity insurance and its liability coverage.\u00a0But be forewarned that not every business will qualify for this type of insurance. You\u2019ll need to prove that you are doing everything possible to secure your data. If you\u2019re not sure if your cybersecurity is the\u00a0best\u00a0it can be, that’s something we can help you figure out.<\/p>\n<\/p>\n
5. What doesn’t a\u00a0Cybersecurity\u00a0Insurance\u00a0Policy cover?<\/h3>\n<\/p>\n
Whenever a business purchases the policy, check the policy documents carefully. Depending on the policy type, you may lack some coverage you wanted, or you might have coverage for things you weren’t aware of. Examples include paying legal fees, costs of notifying customers, meeting ransomware demands, costs of recovering data, etc. Make sure you’re happy with your coverage before you sign on the dotted line.<\/p>\n<\/p>\n
Since it hasn’t been around very long, policies and prices vary between providers. Therefore, businesses need to think carefully about what they would like covered in their cyber insurance policy. Depending on the industry, different organizations will need different types of coverage.<\/p>\n<\/p>\n
Cybersecurity insurance, also referred to as cyber insurance or cyber liability insurance, is insurance that\u00a0your\u00a0business can buy to reduce risks to\u00a0data loss. A cybersecurity insurance policy will transfer some risk to the insurance company for a fee.<\/p>\n<\/p>\n
While\u00a0all\u00a0types of insurance have been around for decades, cybersecurity insurance is\u00a0relatively new. Businesses that chose to buy cybersecurity insurance were early adopters. Given how cyber risks fluctuate, cybersecurity policies\u00a0must\u00a0change\u00a0and adapt\u00a0frequently. Underwriters have access to data that helps them calculate risk and set policy rates, premiums,\u00a0and coverage. For cybersecurity insurance, it’s not\u00a0that\u00a0simple. This hurdle is because cybersecurity insurance is new, and the data is limited.<\/p>\n<\/p>\n
1. It is an Extra Layer of Protection.<\/h3>\n<\/p>\n
Losing data through theft or compromise has the potential to harm an organization.\u00a0It can mean customers go elsewhere and cause\u00a0your business\u00a0a loss in revenue. What’s more, without cybersecurity insurance, your company could be liable for any damages that stem from third-party data being stolen or compromised.\u00a0Losing client data without a backup plan in place could be a disaster.<\/p>\n<\/p>\n
Cybersecurity insurance is essential if businesses want to protect themselves against cyber event risks, including\u00a0threats\u00a0linked to terrorism. In addition, coverage for cyber threats can help remediate cyber incidents\u00a0quickly and could save your business.<\/p>\n<\/p>\n
2. Anyone can be hacked!<\/h3>\n<\/p>\n
Back in 2011, the PlayStation Network suffered a breach by hackers. This breach exposed the personal data of 77 million users. It meant that PlayStation users were unable to access the service for over three weeks. In terms of cost to Sony, there were over 171 million\u00a0dollars lost\u00a0due to this breach. Sony could have saved themselves some of the $171 million had they\u00a0secured\u00a0a cybersecurity insurance policy \u2013 but they didn’t. A subsequent court case ruled that their insurance policy only covered physical damage, which meant that Sony had to pay the costs of the losses from the cyberattack.<\/p>\n<\/p>\n
3. How\u00a0It\u00a0Works.<\/h3>\n<\/p>\n
Many insurance providers that provide\u00a0coverage\u00a0like commercial property insurance or business liability insurance will also provide cybersecurity insurance. Most cybersecurity policies cover the first party (losses that impact a company directly) and third-party losses (losses by other people caused by a cybersecurity incident, depending on their relationship to the organization).<\/p>\n<\/p>\n
Cybersecurity insurance will help cover any losses resulting from cyber incidents and events. What’s more, it can also help with costs linked to remediation, such as paying for legal assistance, crisis communicators, investigators, customer refunds, and\u00a0loss to\u00a0customer\u00a0accounts.<\/p>\n<\/p>\n
4. Who should get\u00a0Cybersecurity\u00a0Insurance?<\/h3>\n<\/p>\n
Companies who manage,\u00a0store\u00a0or create electronic data like contacts, sales,\u00a0or\u00a0credit card\u00a0info\u00a0will\u00a0benefit from cybersecurity insurance. E-commerce companies can\u00a0also benefit\u00a0from cyber coverage.\u00a0Besides losing money, downtime\u00a0from\u00a0a cyber event can potentially lose customers\u00a0and\u00a0sales.<\/p>\n<\/p>\n
In a similar vein, any company storing client information online will benefit from cybersecurity insurance and its liability coverage.\u00a0But be forewarned that not every business will qualify for this type of insurance. You\u2019ll need to prove that you are doing everything possible to secure your data. If you\u2019re not sure if your cybersecurity is the\u00a0best\u00a0it can be, that’s something we can help you figure out.<\/p>\n<\/p>\n
5. What doesn’t a\u00a0Cybersecurity\u00a0Insurance\u00a0Policy cover?<\/h3>\n<\/p>\n
Whenever a business purchases the policy, check the policy documents carefully. Depending on the policy type, you may lack some coverage you wanted, or you might have coverage for things you weren’t aware of. Examples include paying legal fees, costs of notifying customers, meeting ransomware demands, costs of recovering data, etc. Make sure you’re happy with your coverage before you sign on the dotted line.<\/p>\n<\/p>\n
Since it hasn’t been around very long, policies and prices vary between providers. Therefore, businesses need to think carefully about what they would like covered in their cyber insurance policy. Depending on the industry, different organizations will need different types of coverage.<\/p>\n<\/p>\n