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Cyber insurance is commercial insurance that protects businesses against losses and damages resulting from a cyber-attack or breach of data. It covers an array of expenses associated with the cleanup and recovery from a cyber incident, such as investigation and notification costs, legal fees, lost income, and public relations and crisis management expenses. Cyber insurance may also cover costs related to customer identity theft protection, public relations outreach, and business interruption losses, depending on the specific policy.
Cyber insurance policies typically vary in coverage and cost, depending on the size and industry of the business, the level of risk exposure, and the policy’s limits. It’s essential to carefully review and assess a business’s cyber liability exposures to determine the most appropriate coverage and limits to mitigate cyber risks.
Cyber insurance helps mitigate the financial and reputational risks of cyberattacks and data breaches by providing a safety net in case of a violation. This type of insurance can cover damages such as lost income, legal expenses, and notification and credit monitoring costs. It can also provide coverage for public relations services to help mitigate damage to an organization’s reputation. Cyber insurance policies often include risk assessments and preventative measures, such as training and security protocols, to help prevent breaches from occurring in the first place.
Cyber insurance can also demonstrate to customers and stakeholders that an organization takes data protection and cybersecurity seriously, improving their confidence and trust in the organization. Overall, cyber insurance plays a critical role in protecting an organization’s financial stability and reputation in the face of a cyberattack or data breach.
When determining the appropriate coverage and limits for cyber insurance, it is vital to consider the types of data and systems you want to protect, the potential impact of a cyber attack on the organization and its customers, and the regulatory requirements that may apply. Other factors to consider include:
The typical costs associated with cyber insurance can vary depending on many factors, including the company size, the level of coverage required, and the perceived level of risk associated with the business. Insurance premiums can range from a few thousand to tens of thousands per year, with deductibles typically ranging from $5,000 to $25,000. Other insurance providers may also offer additional services, such as security assessments and breach response planning, which can increase the cost of coverage.
Give the team at Kocman Insurance Group a call at 717-854-0300 and we will be glad to answer any of your questions or concerns.