What is Cyber Insurance Policy?A cyber insurance policy also referred to as cyber risk insurance or Cyber Liability Insurance Coverage (CLIC), is designed to help an organisation mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event. Cyber insurance typically covers expenses related to first parties as well as claims by third parties.
- A forensics investigation is necessary to determine what occurred, how to repair damage and how to prevent the same type of breach from occurring in the future.
- Business losses: policy may include similar items that are covered by an errors & omissions policy, as well as monetary losses experienced by network downtime, business interruption, data loss recovery and costs involved in managing a crisis, which may involve repairing reputation damage.
- Privacy and notification: this includes data breach notifications to customers and other affected parties, which are mandated by law in many jurisdictions, and credit monitoring for customers whose information was or may have been breached.
- Lawsuits and extortion: this includes legal expenses associated with the release of confidential information and intellectual property, legal settlements and regulatory fines. This may also include the costs of cyber extortion, such as ransomware.