CYBER INSURANCE
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Cyber Insurance: Protect Your Business and Yourself from Cyber Risks
Introduction to Cyber Insurance
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Definition: protection against data breaches, hacking, and other cyber attacks
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Importance: a crucial layer of financial security for businesses and individuals
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Coverage: customer notification, forensic investigation, data restoration, legal claims defence, and liability damages
Cyber Risks and Threats
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External threats: hackers, viruses, social media, third-party vendors
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Internal threats: rogue employees, human error, mobile devices
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Changing regulatory environment: new laws and regulations causing additional regulatory exposure
Elements of Cyber Insurance
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Risk mitigation: reducing the odds or severity of cyber incidents
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Risk transfer: shifting a portion of the risk to someone else
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Response and recovery: options and next course of action after an incident has occurred
Coverage of Cyber Insurance
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First-party coverage: incident response, business interruption, data and system recovery, cyber extortion
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Third-party coverage: privacy and network security liability, PCI DSS contractual fines and penalties, consumer redress fund, regulatory fines and penalties (where legally insurable), media liability
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Highlights: contingent business interruption, system failure triggers
Cyber insurance protects businesses and individuals from the financial consequences of cyber attacks, including data breaches and hacking. It covers various costs associated with such incidents, including customer notification, forensic investigation, data restoration, legal claims defence, and liability damages.
By offering risk mitigation, risk transfer, and response/recovery options, cyber insurance helps to reduce the odds and severity of cyber incidents and provides financial security in the event of a breach. In today's digital age, cyber insurance is an essential layer of protection for anyone who stores or handles sensitive information online.
