Cyber Threats:
An Evolving Reality

• Data Breach Response: Covers costs associated with responding to a data breach, including notification expenses, credit monitoring, and public relations efforts.
• Cyber Extortion: Provides coverage for extortion-related costs, such as paying ransoms to cybercriminals who have seized or encrypted data.
• Business Interruption: Covers lost income and additional expenses incurred if a cyber incident disrupts business operations.
• Data Recovery: Pays for the costs of recovering or restoring lost or corrupted data due to a cyber incident.

• Third-Party Liability: Protects against claims made by third parties, such as customers or partners, for damages resulting from a cyber incident.
• Legal Fees: Covers the cost of legal defense and any settlements or judgments related to cyber liability claims.
• Regulatory Fines and Penalties: Provides coverage for fines or penalties imposed by regulatory bodies due to data breaches or non-compliance with data protection laws.

• Cyber-Attacks: Includes protection against malicious attacks such as hacking, phishing, and distributed denial-of-service (DDoS) attacks.
• Malware and Ransomware: Covers the impact of malicious software designed to damage or disable systems, or to demand a ransom for data release.
• Human Error: Includes coverage for incidents caused by unintentional mistakes by employees, such as sending sensitive information to the wrong recipient.
• Insider Threats: Protects against malicious actions by employees or former employees that result in data breaches or system damage.

• Media Liability: Covers damages related to digital media, such as copyright infringement or defamation resulting from online content.
• Network Security: Includes coverage for liabilities arising from a failure of network security, such as unauthorized access or data theft.

• Pre-Existing Incidents: Typically excludes coverage for cyber incidents that occurred before the policy was in effect.
• Intentional Acts: Does not cover damages resulting from intentional or fraudulent acts by the insured or their employees.
• War and Terrorism: Usually excludes coverage for cyber incidents related to acts of war or terrorism, unless specifically included in the policy.

• Financial Protection: Helps mitigate the financial impact of cyber incidents, which can be significant and potentially devastating for businesses.
• Risk Management: Provides a framework for businesses to manage and respond to cyber risks, enhancing overall cybersecurity posture.
• Regulatory Compliance: Assists businesses in meeting regulatory requirements for data protection and breach notification, reducing the risk of fines and penalties.

• Cyber risk insurance can be tailored to the specific needs and risk profile of a business, with options to add or exclude certain coverages based on individual requirements.

The cost of cyber risk insurance can vary depending on several factors, including the size of the business, the industry, the level of cyber risk, and the desired coverage limits.

• Comprehensive Protection: Offers broad coverage for a wide range of cyber-related incidents, providing peace of mind for business owners.
• Quick Recovery: Facilitates rapid response and recovery from cyber incidents, minimizing downtime and operational disruption.
• Enhanced Credibility: Demonstrates a commitment to cybersecurity and data protection, which can enhance a business’s reputation and trust with customers and partners.