In the recent past, there were many news articles on cyber breaches and that cyber hackers are very active with malicious intent and extortion. The internet data which is generated, transmitted and stored these days is growing at an exponential pace, as indeed are the activities of cyber criminals. The threats to cyber security is on an unprecedented scale of diversity and complexity.
The insurance cover provided by a Cyber Security Insurance is designed to mitigate losses from a variety of cyber incidents, including data breaches, business interruption, and network damage. An insurance policy could help reduce the number of cyber-attacks by; promoting the adoption of preventative measures and encouraging the implementation of best practices.
The policy is in three sections covering;
Own Damage section covers:
(1) Business Interruption,
(2) Restoration Costs,
(3) Consultant’s Costs,
(4) Hacker Theft Cover for extortion and
(5) Crisis Communication.
The Third Party section covers:
(1) Privacy Breaches,
(2) Data Breach of confidential client information,
(3) Network Security Liability,
(4) Media Liability,
(5) Notification costs and
The policy also pays for Defence Costs for Regulatory Proceedings and Fines & Penalties under the 3rd section.