most businesses can choose whether or not to buy it. But businesses that design, make, or install technology may need to buy tech E&O insurance to comply with the terms of a contract. For example, say A-1 University hires Tip-Top Tech to overhaul the university...
The example of the US cyber insurance market could also contribute to this effort, as an example of a market that has been intensively facing these challenges for almost twenty years. At the same time, the increasing number of cyber incidents, the continued digital transformation, and the new ...
When reviewing cyber insurance policies, it’s important to ask these questions: Does this policy cover a variety of digital attacks, especially the ones we’re most susceptible to? What are the policy’s exclusions? For example, unlikely circumstances like acts of war or terrorism and well-...
For example, consider a data breach in which attackers steal customer data and leak it online. First-party coverage applies to the expenses incurred directly as a result of the breach, such as forensic investigation and recovery. Third-party coverage applies to lawsuits by customers against t...
How Not to Void Your Cyberinsurance PolicyInsurers have a number of tools to manage and limit risk. For example, cyberinsurance policies...Wall, Travis
The amount and sensitivity of data will also impact the cost of cyber insurance. For example, local businesses with a small customer base will pay less than hospitals with large amounts of sensitive personal and health data. These companies will need third-party coverage in case customers blame...
For example, cyber insurance could pay out for the costs associated with dealing with the direct aftermath of a cyberattack, but in the longer run the company might lose business due to public perception of having poor cybersecurity. A cyber insurance policy won't cover the c...
of a cybersecurity incident, such as a ransomware attack. For example, a 2024 report from Sophosindicatedthat average overall ransomware recovery costs were $2.94 million for organizations with a standalone cyber insurance policy, compared to $3.48 million for those with no cyber insurance cove...
Those pesky phishing emails can do real damage to your cash flow. Social engineering coverage is designed to protect companies from funds transfer fraud situations. The most common example is an employee is duped into sending money from your bank accounts to a malicious hacker. ...
In the event a group or individual decides to sue your business after a breach – for example, for negligence because you didn’t have the right security controls and procedures in place to stop sensitive data from being compromised — liability coverage would assist with legal expenses and/or...