There are Three Types of Cyber Insurance You Need to Know About
As the world becomes more digitized, businesses need to be mindful of the increased risk of cybercrime. Cyber insurance can provide crucial protection in a cyberattack, helping companies to recover quickly.
Your cyber insurance should safeguard businesses from the financial losses that can result from a cyber incident. This insurance covers data breaches, cyber theft, and ransomware.
For businesses that may not have the same resources or budget as large public corporations, cyber insurance can make all the difference in being able to bounce back after a setback.
Types of cyber insurance and what they cover
Although insurers may have their own specific classifications, cyber insurance can be divided into three broad categories:
Cyber liability insurance
Cyber liability insurance includes third-party coverage for damages and losses, data breaches, regulatory penalties, credit monitoring, and lawsuits.
Cyber liability insurance is a vital tool for all businesses. Cyber liability insurance can help your business recover and move forward even after a breach without being stunted.
Cyber extortion insurance/ransomware insurance
There is no one-size-fits-all solution to protecting your business from ransomware attacks, but cyber extortion insurance can help reduce the financial impact of an attack. This type of insurance can cover the cost of ransom payments, recovery expenses, business interruptions, and more. It can also provide access to a team of experts who can help with cyber extortion negotiations and forensics.
Keep in mind that an attack could still succeed even with the right cybersecurity solutions in place to protect your business. That’s why it’s critical to have cyber extortion insurance. It can help you recover from a ransomware attack and reduce the financial impact.
Cybertheft insurance
As businesses increasingly store sensitive data online, the risk of cyber theft has never been greater. Protecting your company with insurance against this growing threat is essential.
Cybertheft insurance can cover a variety of digital theft scenarios, including first-party cybertheft, embezzlement scams, payroll redirection, and gift card scams.
No business is too small to be a victim of cybertheft, so even if there is only a remote chance that your data or digital assets could be stolen, ensure you have the right insurance in place.
Let’s work together to ensure your success
You’re not alone if you’re wondering if you might be the next cyberattack victim. Cyber insurance is a complex and rapidly-evolving industry, and it can be tough to keep up with all the changes. Many factors can affect whether or not you’ll get a payout from your insurance policy after a cyberattack, and it can be challenging to ensure you’re always compliant with your policy. Working with an IT service provider can help you better understand your options and ensure you have adequate security, which may increase your chances of getting full coverage.
Not sure where to start? Contact us today to schedule a consultation. Our knowledge and experience may be just what you require.
We’ve also created an infographic titled “Cyber Insurance and Why Your Small Business Needs Coverage” that you can download by clicking here.
