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Cybersecurity Insurance

What Is It?

Cybersecurity insurance is a specialty insurance policy that could be of interest to certain businesses (e.g., financial services).

Protection of a business’s entire information technology infrastructure and customers’ information privacy is more critical than ever. In fact, many businesses and customers are home in these challenging times, so the right cybersecurity policies are more crucial. The cyber attacks, unfortunately, are increasing with more potential victims at home.

 

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Who Is It For?

All kinds of commercial enterprises will likely benefit from cybersecurity policies because so many of these businesses rely on a protected information security infrastructure. Many of these cybersecurity risks are fairly new (e.g., ransomware attacks), and they may not be covered by general liability policies. Coverage in a cybersecurity policy will include losses against data destruction, accidental or malicious, as well as extortion, such as ransomware attacks.

How Does It Work?

Insurance policies should also protect against in-person or remote theft of personal or financial data and denial-of-service attacks, which have been increasing of late. A denial-of-service attack is a kind of cybersecurity threat in which a network is rendered unavailable for its intended users (e.g., your coworkers or family) due to malicious actors “flooding” the network with requests. The bottom line is that denial-of-service attacks can imperil your business and its cybersecurity.

Insurance can also be used to protect against data that is lost due to error or a failure to safeguard. Many insurance companies offering insurance will also offer services to help defray the cost of post-incident investigations or the creating of cyber-criminal reward funds.

Types of Coverages

Different types of cybersecurity policies can be purchased according to the specific needs of individuals or businesses. Theft and fraud coverage is an obvious choice for small businesses or larger enterprises whereas reputation insurance may be more appropriate for more established businesses looking to protect against reputation attacks and cyber defamation.

Major Benefits

Cybersecurity policies can protect against extortion, business interruption, computer data loss, and computer restoration. That said, network security cybersecurity insurance is one that every business should have to protect their information security infrastructure.

Businesses with cybersecurity insurance can protect information internally and protect networked customer data against attacks.