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Cyber security and information protection is a daunting task for companies of all sizes. Due to dynamically emerging technologies such as IOT, the cyber attacks are also emerging through newly devised attack vectors.
Cyber attacks can lead to brand and reputation damage, regulatory scrutiny, stakeholder dissatisfaction, business and financial losses. Organizations need to ensure that appropriate preventive measures are taken to protect the business from any such damages.
Traditional insurance plans used by businesses these days provide coverage only for internal and external frauds, and liability arising out of the provision of various services to the business. Coverage for fraud is established upon a direct financial loss and neither the ransom demand nor the release of data will be considered such. Many global organizations have started complementing their existing insurance plans with a specific Cyber Insurance Policy. This provides protection from a variety of cyber risks – from hackers and other adversary attacks originating through cyber space.
What to look for in a Cyber Insurance Plan:
Most of the players in the insurance sector have started offering cyber insurance policies these days. But do they cover every aspect of cyber attacks? First-Party (Information Systems owned by the organization) Losses and Third-Party Liabilities need to be covered under a Cyber Insurance Plan.
The following critical things need to be looked into the coverage of a Cyber Insurance Plan:
- Coverage for Regulatory Fines and investigations – This will include the costs and expenses of regulator investigations and legally insurable fines following data security breaches.
- Coverage for Crisis management -This will include the costs and expenses of Cyber incident response activities following a data breach.
- Coverage for Data Protection – This will include the costs and expenses of making data safe after a breach
- Coverage for Security & Privacy Liabilities – This will include the costs and expenses of third-party claims arising from a failure of the insured’s network security or a failure to protect personally identifiable information.
- Coverage for Business Network Interruption – This will include coverage for loss of income and operating expenses when a company’s business operations are interrupted or suspended due to a network security failure.
- Coverage for Cyber Extortion – This will include the costs and expenses of response to the threat of intentional cyber-attacks such as Ransomware attack attempting to extort money. This will also include the cost of an investigation to determine the cause of such threats.
- Coverage for damages happening due to online defamation – This will include the costs and expenses of recovering the lost reputation due to online defamation caused by cyber attacks.
- Coverage for Copyrights & Trademark infringements – This will include coverage for losses happening due to any kinds of infringements happening into Copyrights & Trademark Secrets.
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