With the increasing frequency and diversity of cyber breaches, very few businesses today are exempt from the threat. The common notion is that only companies with heavy dependence on IT infrastructure or electronically storing a massive database of sensitive information, require cyber insurance.
But even something as simple as hacking of your company website or email can bring your business to a standstill. While cyber insurance cannot prevent such cyber attacks or lapses, it can compensate for the losses incurred at various fronts, and keep you worry-free as a business owner.
What is the difference between Cyber Liability Insurance, Cyber Security Insurance, Cyber Crime Insurance and Cyber Risk Insurance?
To begin with, all of these terms are often used interchangeably with each other, for insurance against cyber attacks. For most underwriters, cyber liability, cyber security, cyber crime and cyber risk insurance collectively denote an umbrella terminology for the various first party and third party cyber threats that lead to business loss. While in case of some cyber insurance sellers, cyber crime insurance, and cyber risk insurance are specifically meant to cover losses incurred as a result of the following.
As we see above, the above clauses are explicitly relating to any cybercriminal activity affecting your business. On the contrary, cyber liability insurance cyber security insurance and cyber risk insurance covers a whole lot of other aspects in addition to the above. It includes errors, omissions and fraudulent activities carried out by your employees, general network downtime, etc.
All said and done, the risks covered under each header vary from insurer to insurer, and the basic idea is to chalk out an affordable plan which gives your business the exact coverage it requires.
The cost of recuperating in the aftermath of a cyber-attack can be significant. Cyber liability insurance covers the cost of dealing with a cyber attack during and much after the incident happens.
Included in this cover is hack or data breach protection, cyber extortion costs, the damage incurred due to ransomware, virus or other brute force attacks including physical theft arising from cyber breach.
More specifically speaking it includes but is not limited to the following.
These are known as direct losses or first party expenses incurred by a business. It is the cost that you can quantify. Cyber insurance helps tackle direct costs without the need for third party losses to be proven such as under professional indemnity insurance.
Cyber Insurance Coverage is a very different zone, and the coverage requirements of no two businesses can be alike. Only an experienced risk assessment expert can give you a professional risk evaluation report to determine your exact coverage amount and nature of cover required. Your insurer is most likely to draft a coverage plan based on:-
