Cyber insurance protection, also known as cyber liability insurance or cyber risk insurance, is a type of insurance coverage designed to protect individuals and organizations against financial losses resulting from cyber-related incidents and data breaches. It is a relatively new form of insurance that has emerged as the digital landscape has become increasingly complex and interconnected.
Cyber insurance policies typically provide coverage for a range of cyber risks, including:
Data breaches: These occur when sensitive information, such as personal data or financial records, is accessed, stolen, or exposed.
Cyberattacks: This includes various forms of malicious activities, such as hacking, malware attacks, ransomware, and distributed denial-of-service (DDoS) attacks.
Business interruption: Coverage for losses resulting from disruptions to business operations due to a cyber incident, including downtime, loss of revenue, and extra expenses incurred during the recovery process.
Extortion: Protection against ransom demands or threats of extortion, such as ransomware attacks where attackers demand payment in exchange for restoring access to encrypted data.
Privacy liability: Coverage for legal expenses and damages arising from a violation of privacy laws or regulations, such as the General Data Protection Regulation (GDPR) in the European Union.
Notification and credit monitoring: Reimbursement for costs associated with notifying affected individuals and providing credit monitoring services in the event of a data breach.
Digital asset restoration: Coverage for expenses related to restoring or replacing digital assets, including data recovery, system restoration, and damage assessment.
The specific coverage and limits provided by cyber insurance policies can vary depending on the insurer, policy terms, and individual needs. It is crucial to carefully review the policy terms and understand the exclusions, deductibles, and conditions before purchasing cyber insurance protection. Additionally, insurance companies may offer additional services such as risk assessments, incident response support, and access to cybersecurity experts to help prevent and mitigate cyber risks.