Cyber-attack is not a new term in the data-led industry. Companies are suffering from cyber-attacks and data security violations. Information managers are leaving no stone unturned to provide desired security and assurance to their data.
Cyber Insurance is the new buzzword in the Information Security business. Approximately 70% of the information-led industries opt to secure their data through a third-party cyber insurance company. Industry people who are concerned about the reputation of their company, business interruptions, and data loss, and are doing their best to get their hands on cyber insurance.
But what is cyber insurance? What does it cover, and how can we get one? What are the factors to consider while planning to get cyber insurance? This blog has all the answers related to your queries about cyber insurance.
What is Cyber Insurance?
Cyber liability insurance, also known as cyber insurance, is a security policy that helps protect organizations from fallouts due to cyber-attacks. This insurance acts as a shield hindering hacking threats from affecting your business.
In simple words, cyber insurance is a coverage policy for your company’s liability in the case of a data breach, having customers’ information involved. If there is any cyber threat to your organization, this insurance will cover your company’s data on how vehicle insurance covers your vehicles in case of an accident. Implementing cyber liability insurance helps reduce the business hindrances during and after a cyber-offense, while potentially covering the financial costs of some factors of dealing with and recovering from the attack.
Regardless of that, some things are not covered by cyber insurance, and the organization will need to ensure that it understands what is covered by the insurance policy. And most importantly, what is not covered by the same when they sign up for the coverage plan. Although having some kind of cyber insurance can help a business in the case of an attack, a company is also responsible for its cyber security. The responsibility of cyber security doesn’t just entirely shift to the third-party insurer.
What does Cyber Insurance Cover?
A general cyber insurance policy covers the immediate costs of the aftermath of a cyber-attack. Regardless, it may depend on the type of policy you opt for that determines the coverage extent. A cyber insurance policy is liable to cover the costs of security failures, system forensics, including data recovery, and the costs of legalities and making reparations to the customers.
In some cases, it is given that the cyber insurance companies cover the actual giving in costs and pay the ransom. Despite the statement, it is something that law enforcement and the information security industry would not recommend, as it might just stimulate cybercriminals to commit further attacks.
What does Cyber Insurance Not Cover?
As essential as it is to know the factors that cyber liability insurance covers, it is just as vital to make a pact with what it does not cover. It will help you avoid confusion in the future.
The damage to the financial position of your company occurring from the loss of intellectual property is excluded from cyber insurance, along with the reputational costs that might incur followed by a cyber-attack.
For example, cyber insurance can pay out for the costs associated with dealing with the direct chain reaction of the attack. In the longer run, the company might lose business during a bad market reputation of lax cyber security. A cyber liability insurance policy won’t cover the costs of losing customers due to a bad reputation after a cyber-attack commences.
How can Under Controls Help?
Under-Controls Management System is a website/app that enables organizations to manage regulatory prerequisites mandated in management systems. It also guides and advises businesses on the right cyber insurance policy decisions.
So, if you need more of such information and tips — contact us right away!