![]() ![]() ![]() As a result, cyber insurance providers are becoming more versed in and responsive to specific cybersecurity. Meanwhile, evolving cyberthreats and risks have continued to plague organizations and test their resiliency. Organizations of all shapes and sizes have been investing in cyber insurance policies to add protection. The cyber insurance market is going through a state of flux as cybersecurity trends trigger shifts. Ransomware and litigation drive changes in cyber insurance “For example, the financial damage caused by war and/or terrorism or failure of internal infrastructure wouldn’t be covered, and neither would the reputational costs that can be incurred following an attack.” Likewise, a virus that was not specifically designed or created to target the affected company may well be excluded, too, says Hodson. What’s more, not all forms of cyber risk are covered by insurance. Not all policies are created equal, and these coverages would be included in a comprehensive, standalone cyber policy but not necessarily in cyber coverage that’s added to a package policy, Bailey adds. “We are now seeing more and more policies offering post breach funds as well that includes training to staff to prevent repeat occurrences and full system diagnostics.” Richard Hodson, director and insurance broker at UKGlobal Broking Group, adds that policies also typically cover communications and public relations following incidents. Social engineering and cybercrime, and network security and privacy liability.Breach response and remediation expenses.Data retrieval and system restoration costs.Contingent business interruption (lost revenue because of systems being down due to a third party’s failure, such as an IT vendor).Losses resulting from business interruption (lost revenue because of systems being down or encrypted).Nonetheless, Lori Bailey, chief insurance officer at commercial insurance provider Corvus, tells CSO that there are general commonalities across most cyber insurance policies: ![]() What does a cyber insurance policy cover?Ĭyber insurance policies are becoming more diverse as the market matures, and the finer details regarding what one policy may cover can be somewhat different to another, depending on several factors. Cyber insurance, also referred to as cyber risk insurance or cyber liability insurance coverage (CLIC), is a policy with an insurance carrier to mitigate risk exposure by offsetting costs involved with damages and recovery after a cyber-related security breach or similar event. ![]()
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