A Comprehensive Guide To Cyber Insurance

​Knowing that you've covered everything possible to secure your company's data from hackers and breaches is always a relief. But does that mean you're safe from future attacks? The answer is a hard NO.

Cyberattacks can and will happen. They may not only harm a company's reputation, but they can also bankrupt it temporarily or permanently. That’s where cyber insurance comes in handy.

What is Cyber Insurance?
Cyber insurance shields people and companies from internet-based dangers, including ransomware, phishing, and data breaches. Many people think their commercial liability insurance covers cyber insurance. Sadly, this is not at all the case. These don’t have sufficient coverage and aren't made to protect you or your company from all the potential cyber dangers.

The majority of cyber insurance policies offer two forms of protection:

• First-Party – covers any expenses that the insured incurs directly due to the attack, such as business interruption, lost data, and extortion.
• Third-Party – shields businesses from legal action and aids in reimbursing the victims of libel, data breaches, and other cyber security attacks.

What Does Cyber Insurance Cover?
Though companies can customize it, cyber insurance typically covers these:

• Legal fees – there’s a likelihood you may require legal aid to defend against customer lawsuits following a data breach or cyberattack.
• Customer notification – companies must inform their clients of any data breach. This is especially true if there is a loss or theft of personally identifiable information (PII).
• Data recovery – to pay for the recovery of any data lost due to an attack.
• System damage repair – cover the expense of restoring computer systems harmed by a cyberattack.
• Ransomware attack – the costs of complying with extortion demands can be covered through cyber insurance.

What’s Not Included in Cyber Insurance?
Here are some of the points not covered by cyber insurance:

• Inadequate security protocols and processes – when attacks happen due to inadequate cyber security management.
• Prior breaches – incidents that took place before cyber insurance was in place.
• Human error – Any cyberattack that results from employee error.
• Insider attacks – When data is lost or stolen due to an insider job by an employee.
• Vulnerabilities that already existed – when a data breach occurs at a company as a result of neglecting to address or fix a known vulnerability
• Upgrade for technology systems – costs associated with enhancing technology systems.

Conclusion
In the aftermath of a cyber attack, cyber insurance offers optimism. Cyber insurance has substantial benefits, particularly for a business vulnerable to cyberattacks. Businesses may not have to endure financial hardship and resource deprivation.

At CSIS Insurance Services, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!