Cyber Risk insurance (also known as cyber liability insurance or cyber security insurance) is designed to protect businesses against financial loss resulting from a range of cyber threats and exposures, including cybercrime, data breach and system interruption.
With the prevalence of electronic transactions in recent years, cyber risk is currently greater than ever as hackers become more sophisticated and more tenacious. This fact renders Cyber Risk insurance an indispensable protection for almost every business around the world.
Who is this for:
Cyber Risk insurance primarily protects businesses against business interruption and financial losses caused by cyber events, cybercrime and privacy breaches.
A cyber insurance policy may also provide access to technical resources including IT security experts, forensic investigators, lawyers and crisis communications specialists who will help you manage the situation and get back online as quickly as possible.
Most cyber insurance policies consist of a variety of first and third party covers.
The major covers under the policy are:
Incident Response: This section will generally cover all costs involved in responding to a cyber incident, i.e. specialist support, gaining legal advice in relation to ransom demands, etc.
Business Interruption: It covers the costs of data and applications repair, restoration or recreation in the event that your computer systems are damaged as a result of a cyber event. It will also compensate the loss of profits as a result of interruption to your operations caused by a cyber attack.
Cyber Extortion Coverage: When data or applications fall under the control of hackers they often demand a hefty ransom in order to restore access. Cyber extortion coverage will pay the ransom and the costs of consultants or other professionals brought in to address the problem.
Liability Coverage: Victims of cyber attacks have an understandable incentive to sue the company that exposed them to attack. Liability coverage helps companies defend against lawsuits or pay the judgment from lawsuits.
Important Note: The above constitutes a summary of the product features. Full details as to policy covers, conditions and exclusions are contained in Atlantic’s relevant Insurance Policy document.