Cyber security insurance is one policy that most businesses have not heard of before. This type of insurance can protect your business from a cyber attack.
What Is Cyber Security Insurance?
Cyber security insurance is a type of insurance that can protect your business in the event of a cyber attack. This type of attack can include things like:
- Data breaches: This is when an unauthorized person gains access to your company’s confidential information.
- Denial of service attacks: This is when someone tries to prevent legitimate users from accessing your website or online service.
- Malware: This software is designed to damage or disable computers and computer systems.
- Cybercrime is any type of illegal activity carried out using a computer or the internet.
- Cyber-terrorism: This is the use of digital technologies to carry out acts of terrorism.
Why Do You Need It?
If your business were to be the victim of a cyber-attack, you could face expensive repairs, revenue loss, and even lawsuits. Cyber security insurance can help to cover the costs associated with these types of attacks.
What Does Cyber Security Insurance Cover?
When you purchase a business insurance policy that includes cyber security insurance, they will typically cover the following:
- Repair costs: This can include the cost of repairs to your computer system and hiring a professional to help you recover lost data.
- Loss of revenue: If your business is forced to shut down due to a cyber attack, your policy will likely cover the loss of income incurred during that time.
- Legal fees: If you are sued due to a cyber attack, your cyber security insurance policy will likely cover the cost of your legal defense.
What are the Key Policy Provisions of Cyber Security Insurance?
There are a few key things to keep in mind when reviewing cyber security insurance policy documents:
- Coverage limits: Ensure you understand what is and is not covered by the policy.
- Deductibles: Some policies have deductibles that must be met before the insurer will pay out any benefits.
- Exclusions: Be aware of any excluded risks not covered by the policy.
Cyber security insurance can be a valuable tool in protecting a business from financial damages from a cyber attack. When reviewing a policy, ensure everyone understands what is and is not covered to find the right policy for your business.
Exclusions and Limitations of Cyber Security Insurance Policies
While cyber security insurance policies can offer a great deal of protection for your business, it’s essential to be aware of the limitations and exclusions. Some standard exclusions include:
- Intentional acts: If you or someone on your staff intentionally causes a data breach or cyber attack, your policy will not cover the damages.
- Employee error: If an employee accidentally exposes company data or downloads malware onto company computers, your policy will likely not cover the resulting damages.
- Contractual obligations: If you are required by law or contract to have specific cyber security measures in place and fail to do so, your policy may not cover any damages.
It’s important to talk to your insurance agent about any exclusions or limitations that may apply to your policy. This way, you can ensure you have the coverage you need during a cyber attack.
Final Thoughts: Readying Your Business for Cyber Risks
While cyber security insurance can help to mitigate the financial damages of a cyber attack, it’s essential to do everything you can to prevent an attack from happening in the first place. Here are a few tips:
- Implement strong cyber security measures: This includes installing firewalls and antivirus software, encrypting data, and creating secure passwords.
- Educate your employees: Ensure they know how to spot a phishing email and what to do if they receive one. You should also have procedures in place for reporting any suspicious activity.
- Backup your data: Regularly backing up your data can help you recover from an attack with minimal loss of information.
By taking these steps, you can help to protect your business from a cyber attack. When it comes to cyber security, being proactive is the best defense. Having great insurance will ensure you’ve done everything you can to protect the future of your business.