Cyber insurance – the pros and cons

YEXAMPLES OF COVERAGE AVAILABLE

1. Network security

Cyber insurance provides coverage against network security breaches. Information and privacy risks abound, so you need to keep your bases covered against network security failure. This includes malware infection, business email compromise, cyber extortion demand, and ransomware.

2. Network interruption

Modern businesses tend to rely on advanced technology to remain operational. In the event of an incident, some form of interruption is imminent. A cyber insurance policy could potentially cover income losses, interruption expenses and special expenses as a result of a total or partial interruption, degradation in service or failure of the computer systems.

3. Privacy liability business

When a breach happens, it can expose the sensitive data of your customers that lies on your servers. As a result, your business could be held liable. Cyber liability insurance will therefore provide coverage for payment on your behalf which you are obligated to pay as damages and claims expenses from your acts, errors or omissions following a privacy or security breach.

The benefits of buying cyber insurance

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Greater executive awareness. Recognising the scope of cyber risks and the severity of their consequences could pave the way for much-needed security initiatives.

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Cyber insurance helps companies to offset the costs associated with cyber breaches

• Cyber Insurance providers may also provide crisis management and risk-mitigation strategies to reduce the probability of a cyber loss.

Source: https://www.financemonthly.com/2020/03/the-prosand-cons-of-cyber-insurance/