What Is Cyber Insurance And What Does It Cover?

​Cybersecurity insurance is fairly new. Given the changing nature of cyber dangers, cybersecurity policies might vary month-to-month. Cybersecurity insurance underwriters have inadequate data to create risk models for establishing coverages, rates, and premiums.

Cyber insurance helps cover cyber-related financial damages. Cyber-risk coverage pays for legal counsel, investigators, crisis communicators, and customer credits or refunds.

Cyber Insurance Coverage Types
Cyber insurance is also called cyber liability coverage and data breach insurance. This insurance covers your company's cyber-related financial losses. Cybersecurity insurance packages include automatic and optional coverages.

Any company can be targeted. Cybersecurity insurance covers network security, privacy liability, network business interruption, media liability, and errors and omissions.

1. Media indemnity
   Media liability protects you from stolen intellectual property, except patents. This coverage usually includes your business's social media posts.
   
   Media liability coverage in your cybersecurity insurance protects your company's IP.
   
   
2. Business Interruption Coverage
   When your network or provider's network goes down, this coverage pays for fixed costs, lost profits, and extra costs. Coverage includes cyberattacks, human error, and faulty software patches.
   
   
3. Privacy Insurance
   Your business is protected from cyber- and privacy-law-related liabilities with privacy liability insurance. Third-party costs may result from contractual obligations or government and law enforcement investigations.
   
   
4. Network security
   Cyberattacks can target any organization. Network security, business interruption, media liability, and errors and omissions coverage can protect your business's information, privacy, and operations.
   
   
5. Errors-and-omissions coverage
   You can recover lost profits and fixed and extra costs when your network goes down. Damage from:

Third-party security breaches

• Bad software patches or human error can cause system failures.
• Bad software patches or human error can cause system failures.

Three Ways To Lower Cyber Risk
Evaluation
First, have a professional services firm assess your cyber readiness. Before cyber insurance, a security audit is done.

Implementation
An organization must then install cyber insurance-protecting technology. This step can include anti-malware protection against malicious software.

Coverage
A company can show it has the right processes and technologies in the first two steps.

Conclusion
Cyber insurance has evolved from a largely abstract concept considered necessary by only a handful of organizations to a rapidly expanding business insurance segment. It is now something nearly every business leader considers, and many have purchased it.

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!