Cyber insurance has become essential for all organizations as the risk of cyberattacks against applications, devices, networks, and users grow. A cyber insurance policy can protect the enterprise against cyber events, including acts of cyber terrorism, and help with the remediation of security incidents. Here is what you need to know when shopping for cyber insurance.
6 Risks That Cyber Insurance Covers
Every cyber insurance policy is different. In general, a cyber insurance policy helps an organization pay for any financial losses they may incur in the event of a cyberattack or data breach. It can also help to cover expenses related to the remediation process, such as paying for the investigation, crisis communications, legal services and refunds to customers.
Cyber insurance typically includes first-party coverage of losses incurred through data destruction, hacking, data extortion and data theft. The main coverage areas include:
1. Customer notifications – Companies must notify their customers of a data breach, especially if it involves the loss or theft of personally identifiable information (PII). Cyber insurance can help cover the cost of this process.
2. Recovering personal identities – Cyber insurance coverage helps organizations restore the personal identities of their customers.
3. Data recovery – Cyber insurance coverage usually provides businesses with the means to pay for the recovery of any data compromised by an attack.
4. System damage repair – Cyber insurance will also cover the cost of repairing computer systems damaged by a cyberattack.
5. Ransom demands – Cybercriminals who deploy ransomware attacks demand a fee from victims to unlock or retrieve compromised data. A cyber insurance policy can help cover the cost of these extortion fees.
6. Attack remediation – A cyber insurance policy will help an enterprise pay for legal fees incurred through violating privacy policies or regulations. It will also help them to hire security or computer forensic experts who will enable them to remediate the attack or recover compromised data.
6 Risks That Cyber Insurance Won’t Cover
In most cases, a cybersecurity insurance policy will not cover damages from issues that were preventable or caused by human error or negligence such as:
1. Poor security processes
2. Prior breaches
3. Human error
4. Insider attacks
5. Preexisting vulnerabilities
6. Technology system improvements
Cyber Insurance and Cyber Defense Go Hand-in-Hand
Cyber insurance and cyber defense go together like peanut butter and jelly – you can’t have one without the other (sorry, peanut butter purists!). Keep in mind that cyber insurance providers analyze an organization’s security posture before issuing a policy. A better security posture can result in better coverage.
A security audit is often done prior to issuing a policy. The information gathered from the audit will determine the type of insurance policy a provider can offer and the cost of any premiums.
How Can Fortinet Help?
Fortinet provides industry-leading technology, such as enterprise-grade ransomware and phishing solutions that help organizations strengthen their cybersecurity defenses and prove they have the processes in place to qualify for cyber insurance. Fortinet technology also protects organizations from advanced cyber threats like malware and distributed denial-of-service (DDoS) attacks and prevents unauthorized access to their networks and systems by cybercriminals.
Fortinet’s free Cyber Threat Assessment can help you better understand your security risk—a critical first step when investing in cyber insurance.