Cyber insurance has come a long way from its origins as add-ons to your company’s main insurance policies. Today, policies are more complex and can be customized to fit every company’s individual risks.
Cyber insurance, in general, is designed to protect you from privacy risk, security risk and operational risk. This is accomplished through these insuring agreements:
- Network security – This includes first-party costs, or expenses that you incur directly as a result of the cyber incident. These costs may include legal expenses, IT forensics, negotiation and payment of a ransomware demand, data restoration, breach notification to consumers, setting up call centers, public relations consultations, and credit monitoring and identity restoration.
- Privacy liability – This coverage protects you from liabilities arising out of a cyber incident or privacy law violation. Third-part costs that can arise from this include regulatory investigations by governments and law enforcement.
- Network business interruption – This coverage provides a solution for companies that face an operational cyber risk. When your network or the network of a provider that you rely on to operate goes down due to an incident, you can recover lost profits, fixed expenses and extra costs incurred during the time your business was impacted.
- Media liability – This provides coverage for intellectual property infringement resulting from the advertising of your services. It often applies to online advertising, social media posts and printed advertising, but does not cover patent infringement.
- Errors and omissions – A cyber event could keep you from fulfilling your contractual obligations and delivering services to your customers. E&O covers claims arising from errors in the performance of or failure to perform services.
Cyber insurance can keep your costs down in the event of a cyberattack on your business, but it can’t protect you from becoming a victim of cybercrime. Cyber insurance gives you the means to pay a ransom to get your operations up and running again as soon as possible. But a recent research paper says this practice isn’t just encouraging cybercrooks, but it’s also not sustainable for the cyber insurance industry.
Make sure your cyber security posture is as strong as possible. 2W Tech is a technology services provider specializing in solutions for the manufacturing industry. Give us a call today and let us help set up your cyber defense strategy.
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