How much cyber coverage you need depends directly on your line of business and the online tools and services you use to conduct business.
For instance, if you rely greatly on technology and use computers, servers or clouds to store and manage crucial company data as well as customer information and financial or transactional details, you will want to invest in the most comprehensive cyber insurance policy you can get. And most modern businesses are like that.
When signing up for cyber insurance you can choose between four levels of coverage. Going for an insurance policy that targets all four levels will offer optimal financial protection.
The first level of protection is coverage that can mitigate first-party losses. This is the most basic type of cybercrime cover that deals with the direct financial loss your business will face. The first level of coverage is a package designed to take care of the financial costs of the following:
➡️ Data and system restoration – Hiring cyber experts to identify and remove the threat and recover data.
➡️. Breach costs – The costs of your company’s data being exploited.
➡️. Business interruption – The losses your business will face if unable to work as a result of a cyber-attack.
➡️. Cyber extortion – The costs involved in ransom demands, hiring cybercrime experts and preventing future threats.
The second level of coverage deals with claims from third-party losses, or in other words, the losses your customers and clients face as a direct result of your business being the target of a cyber attack.
This coverage refers to:
➡️ Privacy protection claims – The costs of failing to keep a third party’s data secure.
➡️ Regulatory breach liability – Legal expenses arising from the investigation of a government regulator.
➡️. Electronic media liability – Third party claims as a result of content in email or website.
You can also opt for an insurance policy with a third level of protection that will help to sort out extra expenses involved in dealing with the cyber attack. This usually refers to the cost of crisis management and the cost of notifying clients of a possible security breach and monitoring their credit card details as prevention of further attacks.
Some businesses also go the extra mile and include a social engineering, phishing and cyber fraud cover as part of their insurance policy.
This type of cover deals with the costs resulting from cybercriminals manipulating your employees or clients into divulging confidential information that may be used for fraudulent purposes.
How are you protecting your business? Our Managed IT will direct you in the right path.
