Data breaches and other cyber crimes are becoming way too common and the impact on businesses are becoming more and more significant. With the increase in number of breaches and other ransom cases, organisations are starting to cover themselves with a Cyber Insurance.
A Cybersecurity insurance (cyber insurance) is a financial product that enables businesses to mitigate the risk of cyber crime activity like cyberattacks and data breaches. It protects organisations from the cost of internet-based threats affecting IT infrastructure, information governance, and information policy, which often are not covered by commercial liability policies and traditional insurance products.
Generally, insurance for cybersecurity includes first-party coverage of losses incurred through data destruction, hacking, data extortion, and data theft. Organisations would need the insurance for recovery of data, the cost of public announcement or the claims of third parties for damage.
However, insurance agency do not offer cybersecurity insurance to everyone. There are strict conditions to respect before being able to apply for a cyber insurance. Here below are some conditions whereas the insurance agency will not cover the losses.
Poor security processes: If an attack occurred as a result of an organization having poor configuration management or ineffective security processes in place
Prior breaches: Breaches or events that occurred before an organization purchased an insurance policy
Human error: Any cyberattack caused by human error by an organization’s employees
Insider attacks: The loss or theft of data due to an insider attack, which means an employee was responsible for the incident
Preexisting vulnerabilities: If an organization suffers a data breach as a result of failing to address or correct a previously known vulnerability
If you would like to cover your organization against cyber threats, we can help you implement the necessary policies and procedures to be fully qualified for insurance.
Reference: https://www.fortinet.com/resources/cyberglossary/cyber-insurance