As the world becomes more digitized and cybercrime increases, the need for cyber insurance is something businesses should not overlook. If your company handles, transmits or stores sensitive data, you need to know the three types of cyber insurance.
Cyber insurance should protect businesses from the monetary losses arising from a cyber incident that could jeopardize their future. It covers financial losses caused by events such as data breaches, cyber theft and ransomware.
Since small businesses often lack the resources or budgets of prominent corporations, cyber insurance can provide critical financial protection in the event of a cyberattack, helping them recover quickly. Although insurers may have their own specific classifications, we can divide cyber insurance into three broad categories:
Cybertheft insurance
With more and more businesses storing sensitive data online, the risk of cyber theft is more prominent than ever. As a result, ensuring that your company is adequately insured against this growing threat is critical.
Cybertheft insurance protects businesses from financial losses caused by digital theft. This type of insurance can cover a variety of cybertheft scenarios, including first-party cybertheft, embezzlement scams, payroll redirection and gift card scams.
Businesses of all sizes can be victims of cybertheft, and no business is too small to need cyber theft insurance. Therefore, even if the malicious steal your data or digital assets, ensure you have cyber theft insurance for your business.
Cyber liability insurance (CLI)
CLI includes third-party coverage for damages and losses, data breaches, regulatory penalties, credit monitoring and lawsuits.
CLI is a vital tool for small businesses like yours because the financial ramifications of a cybersecurity breach can be more severe than you can handle. It does not mean you should panic right now; it simply means that having CLI can help your business recover and move forward, even after a breach, without being stunted.
Cyber extortion insurance/ransomware insurance
Cyber extortion insurance protects businesses against ransomware attacks. This type of insurance can help cover the cost of ransom payments, recovery expenses, business interruptions and more. It can also provide access to a team of experts who can help with cyber extortion negotiations and forensics.
Remember that an attack could succeed even with the proper cybersecurity solutions to protect your business. That’s why it’s critical to have cyber extortion insurance. It can help you recover from a ransomware attack and reduce the financial impact.
Cyber insurance is a complicated and ever-changing industry. Many factors can influence whether you qualify for a payout in the event of a cyberattack, and trying to remain compliant with your insurance policy can be difficult. Working with an IT service provider can help you better understand your options and ensure adequate security, increasing your chances of receiving complete coverage.
Not sure where to start? Cyology Labs can help you understand how to improve your chances of receiving coverage and a payout in the event of an incident. To learn more, reach out to schedule a no-obligation consultation, or visit us at https://www.cyologylabs.com/cyberinsurance.
Finally, don’t forget to download our mobile app, FRAUDSTER, available on Apple and Android. You can learn more at www.FraudsterApp.com
