What is insurance for cyber protection?
The purpose of cyber protection insurance is to lessen the financial impact that computer hacking or a data breach might have on your company.
Who needs to think about it?
If your company has a website or keeps documents electronically, cybercriminals could target you. Your company will probably experience a cyber attack at some point.
Your company could incur extra expenses as a result of a cyberattack. Additionally, it might endanger your intellectual property and jeopardise the privacy of your clients, harming your reputation.
What can it cover?
Cyber insurance policies vary in the benefits they provide.
First party losses
Business interruption losses – Covers financial loss you may suffer as a result of a cyber attack.
Cyber extortion – The costs of a cyber attack, such as hiring negotiation experts, covering extortion demands and prevention of future threats.
Electronic data replacement – The costs of recovering or replacing your records and other business data.
Third party losses
Security and privacy liability – Damages resulting from data breaches, such as loss of third party data held on your system.
Defence costs – Funds the legal costs of defending claims.
Regulatory breach liability – Covers legal expenses and the costs of fines arising from investigation by a government regulator.
Electronic media liability – The costs of copyright infringement, defamation claims and misuse of certain types of intellectual property online.
Crisis management expenses – Provides cover for the costs of managing a crisis caused by cyber hackers.
Notification and monitoring expenses – The costs of notifying customers of a security breach, and monitoring their credit card details to prevent further attacks.
What usually isn’t covered?
Exclusions and the excess you need to pay can vary greatly depending on your insurer. Policies generally won’t include cover for:
Damage to computer hardware.
Criminal actions committed by you or your business.
A cyber attack based on facts of which you were aware.
Criminals using the internet to steal money from you.
There are other exclusions which your insurance broker can outline.
Call or email Wymark Specialty to discuss your requirements.