So, What is Cyber Insurance Exactly?
Cyber insurance is an insurance policy that helps cover the costs associated with cyber-attacks and data breaches involving sensitive and personal information of individuals and businesses.
Typically, these types of damages are not covered under general liability policies which is why it is important to consider investing in a cyber insurance plan.
What Are The Types of Cyber Insurance?
In order to better understand cyber insurance, we can break it down into three main categories: cyber security insurance, cyber liability insurance, and technology errors and omissions insurance. Let’s explore them all in more detail:
1. Cyber Security Insurance (Privacy Notification and Crisis Management Expense Insurance)
Cyber Security Insurance exists to help reduce the loss your company faces in the event of a cyber-attack and to help your company get back on its feet. By getting a cyber security plan your company may benefit from some or all of the following: data recovery teams, investigation services, public relations manager, services that will notify affected individuals, and more.
2. Cyber Liability Insurance (Information Security and Privacy Insurance)
When a company experiences a data breach or cyber-attack and may face associated liability costs, a cyber liability plan will help mitigate the financial burden. The plan is particularly beneficial for online companies selling certain services or goods as well as companies that take in data electronically. Data breaches can occur from elaborate cyber-attacks or simply having a file stolen from the office. Either way, a cyber liability insurance plan will have you covered.
3. Technology and Omissions Insurance (Professional Liability Insurance)
95% of breaches result from employee errors. This type of cyber insurance helps mitigate the cost of negligence claims and lawsuits. It particularly applies to companies selling technology products as it protects coders and others involved in the process of developing potentially faulty software.