When you hear about insurance, one type that you might not be aware of is cyber insurance. By knowing what cyber insurance is, you can help to protect yourself, as well as your business. Since technology, social media, and the internet play a key role in how most organizations conduct business or reach out to potential customers, there is a greater chance that a cyber attack happens. This can happen to businesses large and small.
A cyber insurance policy, is also referred to as cyber risk insurance or cyber liability insurance coverage. This is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber related security breach or similar event. About one-third of U.S. companies currently purchase some type of cyber insurance.
Cyber insurance typically covers expenses related to first parties as well as claims by third parties. Although there is no standard for underwriting these policies, the following are common reimbursable expenses for cyber insurance. If you have any questions about your insurance policy, or cyber insurance, make sure to contact us so we can explain the options to you.