In the age of digital information, almost every business stores sensitive data on computers and other electronic devices. If this data falls into the wrong hands, it can be used to commit identity theft, fraud, or other crimes. That’s why businesses need to have cyber insurance. Keep reading to learn more about cyber insurance and how it can protect your business.
What is cyber insurance?
Cyber insurance is a type of insurance that covers businesses and individuals against losses incurred from cyber attacks. To be eligible for coverage, the company must have taken certain precautions to protect itself from cyber attacks, such as installing firewalls and anti-virus software. A firewall is a system designed to prevent unauthorized access to or from a private network. Anti-virus software is a type of software that is designed to protect a computer from viruses and other types of malware.
What is covered under cyber insurance?
Services such as data recovery, forensic investigation, and credit monitoring are covered under cyber insurance. Data recovery is salvaging data from damaged, failed, corrupted, or inaccessible secondary storage media when it cannot be accessed commonly. The data may be lost due to physical damage to the storage device or logical damage to the file system that prevents it from being mounted by the operating system. The most common data recovery scenarios involve a functional system failure, accidental file deletion, formatting, malware infection, or a computer crash.
Data recovery is often expensive, and the cost can vary depending on the storage device type, the damage, and the data recovery technique used. Cyber security forensic investigation is the process of investigating and analyzing digital evidence. The goal of a forensic investigation is to collect and preserve evidence in a manner that is admissible in court. A forensic investigation begins with the identification of the crime scene. The crime scene may be a computer, a network, or a storage device.
Once the crime scene is identified, the forensic investigator begins to collect evidence. This evidence may include but is not limited to log files, cache files, cookies, system files, application logs, email messages, images, videos, and more. The forensic investigator will then analyze the evidence to identify the perpetrators of the crime. Lastly, credit monitoring is the ongoing process of tracking the credit activity of an individual or company. Credit monitoring services help identify suspicious or fraudulent behavior that could indicate identity theft or other credit-related problems by tracking credit activity.
What are the types of cyber insurance?
Several types of cyber insurance policies are available, each with its own set of coverage options. The most common type of cyber insurance policy is the data breach policy, which helps to protect your business if your confidential data is stolen or accessed by unauthorized individuals. If a company experiences a data breach and must notify its customers of the breach, it may be able to file a claim with its insurer to cover the cost of notifying those customers. Another cost a data breach policy may cover is hiring a forensic investigator and replacing damaged or stolen data.
Another common type of cyber insurance policy is the business interruption policy. This policy covers the lost income and expenses incurred due to a cyber attack that disrupts your business operations. It can also help pay for the costs associated with relocating your business to temporary premises if your original location is inaccessible. For example, if your company is hit by a ransomware attack and cannot operate for some time, the business interruption policy would help cover the associated costs.
Working with an agent is essential if you’re considering purchasing cyber insurance. Cyber insurance is a complex area, and there are a lot of different policies to choose from. Your agent can help you to find the policy that best suits your needs and provides the most protection for your business.