Last blog post we spoke a bit about the importance of having a good plan in place in order to protect yourself from Cyber Security attacks of various kinds. Today’s focus is to explain some of the various terminology associated with cyber security so that while you are searching for an insurance policy you will better understand all the elements involved.
In the beginning, standalone policies were the only type of coverage available for cyber security, and included first party and third party coverage. First party coverage protects you from the hard costs of a data breach and third party coverage protects you in the event of a class action lawsuit. Now a days, coverage is more versatile and plans can be purchased which give you a good balance of coverage to protect yourself from threats. The following terms should be understood before you go shopping.
Terms to Understand When Shopping for Cyber Security Insurance Coverage
The first time you need to understand is Territory. This is pretty self-explanatory. Just like with an insurance policy, the territory of coverage dictates how far within a particular area you are covered in. A typical cyber security insurance policy offers worldwide coverage. The second term you might hear thrown around is Notification Costs Reimbursement. When a cyber-attack is committed the process of contacting affected victims can be highly costly. This cost used to be covered completely by insurers but in more recent times, only a specific number of victims are included in plans. The last term you should get familiar with is Cloud Failure. Cloud failure coverage will reimburse a business if the failure of a cloud results in online earnings.
Types of Coverage’s to Consider
Network Security and Privacy Liability Endorsement – Legal defense will be provided if negligence in maintaining personal information occurs.
Regulatory Action Defense Coverage – This type of coverage is generally coupled with network security and privacy liability endorsement. The legal costs will be covered, unless claims are made by the government.
Crisis management coverage – When something bad happens with an organization it’s important that the PR people do their best to maintain the company’s Reputation. Crisis management coverage does just that by covering the costs to maintain your company’s reputation.
Business interruption coverage – The policy covers your company in the event that a data breach costs you a significant amount of loss in business income.
Data restoration coverage – It costs money to restore all your companies documents and data. This coverage will pay for the cost of restoring your systems and security measures.
Computer System Extortion Coverage – in the event that your business’ data is held for ransom this coverage plan will cover the costs associated with any investigation that must be done. It will also cover any costs associated with loss due to extortion.
Cyber security is a serious matter to be considered when you run a business. We hope that we cleared up some of the many questions people often have when deciding on a coverage plan. If you still have questions feel free to contact one of our agents today.