Cyber insurance, also known as data breach insurance or ransomware insurance, is a specialized type of insurance coverage designed to protect businesses and individuals from financial losses and liabilities associated with cyber incidents.
Data breach insurance specifically focuses on the costs and consequences of a data breach, where sensitive information is compromised or accessed without authorization. This coverage typically includes expenses related to notifying affected individuals, forensic investigations, legal fees, public relations efforts, credit monitoring services, and potential legal settlements.
Ransomware insurance addresses the growing threat of ransomware attacks, where malicious actors encrypt data and demand a ransom for its release. This coverage helps businesses recover from such attacks by providing funds for ransom payments, data restoration, incident response, and legal support.
Cyber insurance policies may also cover other cyber-related risks, including network security breaches, business interruption losses, social engineering scams, and electronic theft. The specific coverage and limits vary depending on the policy and insurer.
Organizations and individuals can transfer some of the financial risks associated with cyber incidents to the insurance company by obtaining cyber insurance. It helps mitigate the potential financial impact of cyber-attacks and data breaches, providing peace of mind and support in the event of a cyber incident.
First things first, we do not believe in having to choose between cyber insurance and cybersecurity. Cyber insurance is not a replacement for cybersecurity. We are passionate about working with the cybersecurity industry and strongly believe collaboration is the only way forward.
The need for cyber resilience and cyber defence has never been greater. At Assured, we live and breathe cybersecurity and believe in raising the cybersecurity bar. But we also know that despite best intentions and efforts, defences often fail, hackers, prevail, and companies need a backstop.