What is Cyber Insurance?
Cyber insurance is a form of insurance for companies and individuals against internet-based risks. The most common risk that is insured against is data breach. Cyber insurance typically includes compensation for litigation related to data breaches such as errors and omissions. It also covers losses from network breach, intellectual property theft, and loss of privacy.
Several high profile data breaches have led some insurance companies to offer cyber insurance policies to protect customers from the effects of network threats such as: B. Data breaches to protect.
These policies typically include first party coverage against losses related to cyber attacks such as hacking, malware, theft, and extortion, as well as compensation for claims related to these attacks that customers may bring with them. Compensation covers errors and omissions that may have caused the attack, such as failure to secure a network. Often times, guidelines also include how public relations work should respond to an attack.
The disadvantage of cyber insurance is that insurers always want to minimize risk. Therefore, prospective customers undergo extensive assessments of their security procedures before an insurer covers them.