Technology, social media and transactions over the Internet play key roles in our day today life. most organizations conduct business and reach out to prospective customers today using internet social media platform.Those mediums also serve as gateways to cyber-attacks. Cyber risk. Whether launched by intruder, hackers, criminals, insiders or even hackers around the globe, cyber-attacks are likely to occur and can cause moderate to severe losses for organizations, Companies large and small. As part of a risk management plan, organizations routinely must decide which risks to avoid, accept, control or transfer. Transferring risk is where cyber insurance comes into action.
Several high-profile data breaches have prompted some insurance companies to offer cyber insurance policies to protect customers from the effects of network threats, such as data breaches.
These policies typically include first-party coverage against losses related to cyber-attacks any threat caused by the internet, such as hacking, malware, theft and extortion, as well as SLA, Disclaimers against lawsuits related to these attacks that customers may bring. The indemnification extends to errors and omissions that may have caused the attack, such as failing to secure a network. Policies also often include public relations responses to an attack.
The downside of cyber insurance is that insurers always want to minimize risks, therefore potential customers are subjected to extensive evaluations of their security procedures before an insurer covers them.
A cyber insurance policy, also referred to as cyber risk insurance or cyber liability insurance coverage (CLIC), is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event.
Points involved :
- Investigation: A cyber forensics investigation is necessary to determine what occurred, how to repair damage and how to prevent the same type of breach from occurring in the future. Investigations may involve the services of a third-party security firm, as well as coordination with law enforcement and the authority.
- Business losses: A cyber insurance policy may include similar items that are covered by an errors due to negligence and other reasons as well as monetary losses experienced by network downtime, business interruption, data loss recovery and costs involved in managing a crisis, which may involve repairing reputation damage.
- Privacy and notification: This includes required data breach notifications to customers and other affected parties, which are mandated by law in many jurisdictions, and credit monitoring for customers whose information was or may have been breached.
- Lawsuits and extortion: This includes legal expenses associated with the release of confidential information and intellectual property, legal settlements and regulatory fines. This may also include the costs of cyber extortion, such as from ransomware. Data encryptions.