What does Cyber insurance cover?
In the event of a cyber-attack, most cyber insurance policies will cover the first-party and third-party financial and reputational costs if data or electronic systems have been lost, damaged, stolen or corrupted.
For the business involved – the first-party — cover includes the cost of investigating a cybercrime, recovering data lost in a security breach and the restoration of computer systems, loss of income incurred by a business shutdown, reputation management, extortion payments demanded by hackers, and notification costs, in the case you are required to notify third parties affected.
Third-party coverages (that result from claims against you) include damages and settlements, and the cost of legally defending yourself against claims of a GDPR breach.
Cyber insurance coverage may include costs associated with:
• Lost income due to business disruption
• Ransomware payments
• System restoration
• Data recovery
• Forensic analysis
• Customer notifications, etc.