Cyber Insurance

1. What is Cyber Insurance, and why is it essential for our business?

Cyber insurance protects your company from financial losses due to cyber attacks, data breaches, and technology-based disruptions. This coverage is crucial in reducing potential costs and managing the risks associated with today’s digital threats.

2. What specific risks does cyber insurance address?
Cyber insurance safeguards your finances and reputation by covering:

• Data breaches, protecting sensitive client and employee information.
• Cyber extortion, managing ransomware expenses.
• Legal costs for regulatory fines and litigation.
• Business interruption, compensating for revenue loss from operational downtime.

Cyber insurance is a strategic shield against unexpected losses, allowing you to manage risks that could otherwise drain company resources.

3. What is the financial impact of a cyber incident without coverage?

The costs can be substantial:

• Regulatory fines for data privacy violations.
• Legal fees for handling claims and settlements.
• Data recovery and IT repair costs for compromised systems.
• Reputation management to rebuild trust with clients and stakeholders.

Having cyber insurance in place helps offset these expenses, ensuring your business remains financially resilient in the face of an attack.

4. How quickly can we recover if a cyber incident occurs?

With cyber insurance, you gain access to a rapid response team to assist in data recovery, manage public relations, and handle legal support. This reduces downtime and helps your business resume operations more swiftly, maintaining continuity.

5. What should I consider when choosing cyber insurance for my company?

When selecting cyber insurance, it’s essential to assess your company’s specific risks and needs. Key factors to look for include:

1. Coverage Scope: Ensure the policy covers common threats like data breaches, ransomware, and business interruptions, as well as crisis management, legal costs, and reputational support.
2. Incident Response: Check if the insurer offers a dedicated incident response team or 24/7 support. Quick access to experts can significantly reduce downtime and costs in case of an attack.
3. Exclusions and Limits: Review what’s excluded, such as internal breaches or known vulnerabilities. Also, understand any sub-limits on particular coverage areas.
4. Compliance Support: Some policies include support for regulatory compliance and may cover fines or legal fees related to data protection laws.
5. Claim Process and Deductibles: Evaluate the ease and speed of the claims process, as well as any deductibles or co-payments. Transparent terms help avoid surprises in a crisis.