Any company using technology or gathering data is vulnerable to a cyber attack, and the consequences could be disastrous. Most businesses most likely need adequate insurance coverage after a data breach by securing a specific cyber policy.
After a data breach, cyber insurance can be crucial in assisting your business in recovering. Costs covered by this insurance may include those for forensic investigation, business interruption, revenue loss, equipment damage, legal fees, public relations costs, and costs related to legally required notifications. The ability of cyber insurance to protect your business well before a breach is a lesser-known advantage.
Let us take a look at all aspects of cyber insurance in more detail. Mentioned below are a few ways in which cyber insurance can offer protection:
- Lost data
No matter where online data is stored, businesses are still accountable for it. You could be held responsible if any personally identifiable information (PII) or protected health information (PHI) is compromised, regardless of where it is kept—on your property, in an offsite data warehouse, or the cloud of a third-party technology provider.
To ensure you don’t keep data you don’t need, create and test policies and procedures for collecting and storing data. Having a document retention policy in place is helpful.*
- Lost Devices
Due to today’s mobile workforce, laptops and other mobile devices frequently leave the workplace and risk being stolen or compromised, potentially disclosing sensitive or private information. Even though you can’t prevent theft or loss, your company can take precautions to offer protection and limit the amount of data on each device, such as putting policies in place for using strong passwords and requiring regular changes. Do not keep any sensitive information on laptops.*
A Cyber policy may include Network and Information Security Liability in its cyber insurance coverage, which offers insurance against responsibility for failing to guard against access that is not authorised or the use of data containing third parties’ private or confidential information if a breach occurs.*
- Notification Requirements
An insurance provider would refer the client to a law firm as part of a cyber policy to act as counsel and breach coach and assist in reimbursing those costs, subject to the applicable retention. By state laws, it would also be advised to use an incident breach response vendor to handle customer notifications.*
Teams of computer forensics experts can assess the scope of a breach and determine whether any sensitive customer data may have been exposed. Subject to any applicable retention, a cyber policy would reimburse the insured for computer forensic specialists. The insurance could also cover additional costs that arise during the period of business restoration as well as potential business losses.*
Customers can use risk management services, cyber security professionals, and other tools to help stop data breaches. Understanding what cyber insurance is can help your business prepare to react appropriately in the crucial hours and days after a data breach.*
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.