More and more companies are turning to cyber insurance in order to mitigate risk. In fact, according to Network World, nearly half of all business owners carry some form of cyber insurance as data breaches reach an all-time high. This article, written by Linda Musthaler, explains the different types of cyber insurance, what certain plans do and don’t cover, and how to get the most from your policy.
According to the article, companies must put in a lot of work to understand what plan they may need and the first step is to assess risk and analyze the potential impact of an attack. Once understood, a company will have a variety of options in the cyber insurance marketplace:
Data Breach and Privacy Management Coverage: This plan covers the cost of “managing and recovering from data breaches” including the investigation, notifying the victims of stolen data, monitoring victims’ credits, and legal fees.
Multimedia Liability Coverage: Covers “defacement of websites, media, and intellectual property rights.”
Extortion Liability Coverage: Covers damages from extortion such as a Distributed Denial of Service attack (DDoS), which temporarily locks up a website until a ransom is paid.
Network Security Liability Coverage: Covers third party theft as well as DDoS attacks.