What is Cyber Security Insurance?
Cyber security insurance protects businesses against computer-related crimes and losses. This can include targeted attacks, such as malware and phishing, as well as the occasional misplaced laptop containing confidential material.
If your business computer system is compromised by a targeted or an accidental attack, you may be liable for the cost to notify the affected parties and provide credit monitoring, even if the data is not exploited. You could lose money to a phishing attack or lose business due to a ransomware demand.
Why do I need Cyber Security Insurance?
With hackers becoming bolder and cyber-attacks getting bigger and more frequent every year, business owners must take control of their computer security and protect themselves. Cyber insurance provides small businesses the coverage they need to protect one of their most valuable assets – data.
You need cyber insurance if your business:
Accepts credit cards or other digital payment types
Uses computers and mobile devices
Keeps medical or financial data
Stores confidential customer information
What does Cyber Security Insurance cover?
Breach costs: Covers costs associated with responding to a breach, such as forensic costs to confirm and identify the breach, costs to notify affected individuals, credit protection services, including costs to staff a call center for redemption of monitoring offers, and crisis management and public relations costs.
Cyber Extortion: Covers response costs and financial payments associated with network-based ransom demands. With the increase of ransomware and unknown currencies such as Bitcoin, network extortion demands are on the rise. In the digital world, intangible assets are ‘kidnapped’ and used to extort individuals through threats to shut down a system or divulge sensitive or proprietary information if a ransom is not paid
Cyber Crime: Covers financial losses associated with social engineering, reverse social engineering, and funds transfer fraud. Social engineering is when someone uses electronic means to impersonate your client, vendor, or employee to deceive your company into transferring or delivering financial assets. Reverse social engineering is when a cybercriminal uses your computer system to deceive your client or vendor into transferring money intended for you to another person or entity.
Business Interruption: Covers lost business income when a company has its network-dependent revenue interrupted. Technology growth has created new business income dangers, such as viruses, tech failures, programming errors, and computer hacking, so cyber coverage is needed to pay for interruptions from these events as well.
Data recovery: Covers costs to replace, restore, or repair damaged or destroyed data and software. In a digital world, property is no longer exclusively tangible, so cyber coverage is needed to pay for intangible data recovery costs. Privacy Protection: Covers costs to defend and resolve claims with regard to the handling of personally identifiable or confidential corporate information. Covers negligence, violation of privacy or consumer protection law, breach of contract and regulatory investigations. Covers issues resulting from the failure of network security, including the negligent transmission of a virus.
Digital media upgrade
Digital media: Covers costs to defend and resolve claims related to online content, such as copyright or trademark infringement, invasion of privacy, defamation, unintentional infliction of emotional distress, unfair practices and negligence in connection with your media activities. This is insurance for claims made against you that arise from the content of your website, social media and other promotional material.
Cyber insurance offers broad coverage designed to protect businesses like yours. Contact your Aitken & Ormond Agent to find out more about cyber coverage.