Cyber attacks and data breaches are increasing in frequency and severity. Financial and reputation damage from an attack can be devastating to a company. Malicious cyber activity has lead to a growing popularity and usage of cyber insurance by companies of all sizes. Most cyber insurance plans cover a business’ liability for data breaches involving sensitive customer data, such as account numbers, credit card numbers, social security numbers and private health information.
Cyber and privacy insurance is often confused with technology errors and omissions (tech E&O) insurance. In contrast to cyber and privacy insurance, tech E&O coverage is intended to protect providers of technology products and services, such as computer software and hardware manufacturers, website designers, and firms that store corporate data on an off-site basis.
Cyber insurance coverage details will vary by insurer and policy. Some common areas included:
- Customer notification of data breaches.
- Recovery of stolen or compromised data.
- Restoration of individual identities for affected customers.
- Restoring computer systems damaged by the attack.
- Incident analysis: After a data breach occurs, a forensic investigation is usually required to assess the full scope of damage and to identify methods to prevent similar future attacks.
- Operation losses: The financial impact of a data breach can be substantial and can involve many different sources including, business interruption, recovery of lost data and repairing damaged reputation.
- Customer notification of privacy violations: Assistance with data breach notification that are often required by law depending on location.
- Providing post breach credit monitoring for customers who’s information may have been compromised.
- Legal expenses and ransom threats: Legal settlements and regulatory fines may result from a data breach. There is also the possibility of cyber extortion and data stolen for ransom.
Some insurance providers may require a risk assessment audit to determine if a company’s processes and cyber infrastructure justify providing coverage. At Qumulus Solutions we provide a variety cyber insurance options and can answer your questions about finding the right coverage. We will review your company details and work with you to find the plans that best fit your needs. Any organization that works with sensitive data needs to consider investing in cyber insurance.