Cyber insurance can’t protect your organization from cybercrime, but it can keep your business on stable financial footing should an event occur.
A cyber insurance policy can help your business mitigate risk exposure by offsetting costs involved with recovery after a cyber-related event.
We find that many businesses that are looking to cyber insurance to mitigate cyber risk, don’t completely understand what cyber insurance covers.
Cyber insurance coverage varies by insurer and policy. Be sure you understand what your policy covers and what it doesn’t cover. When comparing policies among insurers, find out if they cover all of the items listed below:
Network Security Liability
Defense and liability for failure of system security to prevent or mitigate a computer attack including but not limited to spread of virus or a denial of service. Failure of system security includes failure of written policies and procedures addressing technology use.
Defense and liability for failure to prevent unauthorized access, disclosure or collection of confidential information, or for failure of others to whom you have entrusted such information (e.g., pension actuary, data storage facility, credit card processor). Also includes liability for not properly notifying of a privacy breach. Coverage includes corporate information such as third-party trade secrets.
Privacy Regulatory Defense Costs
Costs to defend an action or investigation by regulator due to a privacy breach, including indemnification for any fines or penalties assessed.
PCI Fines, Expenses and Costs
Indemnification for the direct monetary fines, penalties, reimbursements, fraud recoveries or assessments owed by the Insured Organization under the terms of a Merchant Services Agreement.
- Investigation services (including forensic)
- Breach notification services (including legal fees, call center, etc.)
- Identity/fraud monitoring expenses
- Public relations, crisis management and law firm costs
- Restore, recreate or recollect electronic data
Defense and liability for copyright infringement, plagiarism, defamation, libel, slander etc.
Costs of consultants and extortion monies for threats related to interrupting systems and releasing private information.
Business Income / Extra Expense
Reimbursement for loss of income and/or extra expense resulting from an interruption or suspension of computer systems due to a failure of technology. Includes coverage for dependent business interruption and forensic expenses.
ACE IT Solutions is working in partnership with Marsh, a global leader in insurance brokering and risk management, to provide cyber insurance. Marsh helps clients in every industry better quantify and manage risk — and transform uncertainty into opportunity. Contact ACE IT Solutions at 646.558.5575 or for more information on security risk assessments and implementing cyber controls and cyber protection.