Cyber Insurance

Cyber Insurance is targeted towards companies, businesses, and individuals who may experience data breaches. Cyber Insurance companies provide full coverage to protect businesses from internet/technology-based breaches and attacks. It covers financial costs and lawsuits that arise from the loss of the company’s or the customer’s sensitive information.

Cyber insurance is a valuable asset to many companies world-wide. With cyber insurance, many companies, large and small, can prevent and recover from cyber-attacks. As our world modernizes and technology continues to improve, the strength, effectiveness, and frequency of cyber attacks will increase.

• Top Cyber Insurance Companies World-Wide: The top cyber insurance companies operate internationally, have many customers, and offer various coverage plans and policies. Top companies have substantial assets, powerful reputations, and broad influence in many locations.
• Aspects that Insurance Plans Cover: Many of the best insurance plans cover the same cases. These can include the impacts of data breaches, lawsuits for and against the company, and recovery plans to improve security.
• The Types of Insurance Policies: Insurance policies can be similar but include distinct aspects that create differences. Some cyber insurance policies cover companies that handle sensitive information and can be severely damaged by network attacks such as viruses and malware. Other policies can offer recovery plans or if a company’s obligations are hindered because of the cyber attack.
• Factors Affecting Cost of Cyber Insurance: Given that many different companies vary in size and needs, insurance companies consider many other factors when charging for cyber insurance properly. Three distinct factors are the size of a business, the risk of attack, and previous history.

Cyber insurance is a crucial security measure for companies and businesses at risk of data breaches. With cyber insurance, businesses can receive aid to recover financially and protect their reputation. Cyber attacks are an extreme threat to the reputation and well-being of all companies.

Cyber Insurance Companies

• Chubb Corporation: Chubb is an international insurance company that offers cyber insurance to companies worldwide. Its headquarters are in New Jersey, but it has locations in 54 countries and territories.
• Liberty Mutual: Liberty Mutual is also a renowned insurance company worldwide. It offers flexible cyber insurance plans for small to large corporations.
• American International Group: AIG is a well-known and trusted insurance company arguably one of the best in the business. Regarding brand trust, policy types, and assets, AIG was ranked number one by https://cybermagazine.com/top10/top-10-cyber-insurance-companies.

What Cyber Insurance Covers

• Data Breaches: Cyber insurance for companies will mostly cover breaches regarding customers' and employees' data. These include theft of personal information, attacks on data from third parties, attacks from network breaches, and terrorist/hackers.
• Lawsuit Coverage: Cyber insurance providers will also look to defend you legally in a lawsuit or court of law. These policies will cover customer and employee lawsuits due to privacy breaches.
• Costs Because of Data Leaks: Cyber insurance companies can pay for lost revenue, ransom transactions, fines/fees, and PR costs to restore a company’s reputation in insurance policies.
• Recovery and Counseling: Cyber Insurance companies may also provide aid and guidance to companies looking to repel cyber attacks and to companies that have suffered from one. Policies offered can provide for the replacement of stolen data, legal counseling to determine a company’s legal obligations to its employees and customers, and other damages and settlements.

Types of Cyber Insurance Plans

• Privacy Liability: These coverages provide protection and aid to companies that handle important and sensitive customer and employee details. These are companies such as telephone networks, hospitals, and governments.
• Network Security: These coverages protect companies from network breaches and data loss, which malware, viruses, ransomware, and cyber extortion ransoms can cause.
• Errors and Omissions Coverage: This type of plan protects agencies when cyber attacks affect the delivery of products and services to customers. These can include but are not limited to the services and products related to lawyers, doctors, engineers, consultants, and pharmacists.

What Cyber Insurance May Not Include

• Attacks and Breaches Occurring in the Past: Cyber insurance companies may not be liable to provide aid or help for prior breaches and data attacks.
• Errors Stemming From Humans: Cyber insurance companies may not cover mistakes in writing code or the direction of security measures.
• Inside Attacks By Employees: Cyber insurance companies are not held accountable for cyber attacks caused by a company’s employees from the inside.

How Cyber Insurance Plan Cost is Calculated

• Size of a Company: The size of a company plays a role in determining the cost of cyber insurance as it determines the amount of insurance and coverage needed to protect and help the company.
• Exposure Risk: The amount of risk a company faces also impacts the price of cyber insurance. If a company is prone to cyber attacks, then the cost of insurance may be higher, while a company that is not prone to cyber attacks will receive a lower price.
• Past History: Cyber insurance companies will consider a company's previous history to determine its insurance price. A company with more breaches and employees will likely result in a higher price, as more insurance is needed to provide for the company’s needs.