With the ever-growing reliance of businesses on technology and the subsequent exposure to cybercrime, your business must be properly protected. Cyber crime insurance can offer you vital coverage in the event of theft or damage to your data and hardware due to malware, viruses, or other attacks by online criminals and hackers.
With many different companies offering cyber crime insurance coverage options, it’s important to find one that offers exactly what you need. Here are some questions to ask yourself when shopping around for cyber crime insurance coverage options to make sure you have complete protection from a cyber attack in the future.
Cyber Crime Insurance Policy Wording
Insurance companies are offering more cyber crime insurance coverage to protect businesses from the growing threat of cyber attacks. But what does this coverage mean? And what does it cover? Here's a breakdown of what you need to know about cyber crime insurance coverage.
The first step to understanding what cyber crime insurance coverage is all about is making sure you know what it doesn't mean. Most policies don't cover crimes that were committed by someone who worked directly for your business, so they won't pay out if an employee destroys files, uses your network to attack other organizations, or hacks into your systems without permission.
They also generally don't cover intellectual property IP issues such as when a competitor hires a hacker to access and steal trade secrets or your databases are compromised through negligence on your part. Your cyber security policy needs to take care of those issues, which are dealt with differently than hacking attempts that may be covered by cybercrime insurance policy wording.
Types of Cyber Insurance
When you're running a business, it's important to have the right cyber crime insurance coverage in place. This includes coverage for cybercrime. Cybercrime insurance can protect your business from losses due to hacking, data breaches, and other types of cyber attacks. There are three main types of coverage: first-party coverage, third-party coverage, and Crime Shield coverage.
First-party cyber crime insurance coverage covers a company's computer systems and equipment. This includes any damage caused by hacks or cyber attacks, as well as costs associated with restoring data lost during a breach. Third-party coverage is another form of cybercrime protection that can reimburse a business for expenses related to hacking, such as legal fees and settlement costs.
Unlike first-party coverage, it doesn't cover damage to your computers, but you'll have more options if you want help handling crises. For example, third-party coverage will usually include public relations assistance after a cyber attack has occurred. The last type of coverage worth considering is Crime Shield.
It's an alternative to traditional cyber crime insurance coverage which protects against fraud crimes, not just hacking attacks. These incidents are often overlooked when traditional policies are created because they don't fit neatly into one category. With Crime Shield policies, however, cyber insurance companies can get some peace of mind knowing they're covered against these kinds of risks too.
Cyber Insurance Benefits
If you're a business owner, you know that protecting your company against risks is essential to its success. And while you may have insurance to cover physical damage or theft, what about the risk of cyber crime? Today, cybercrime is a growing threat to every business sector, from financial institutions to retailers.
According to CNBC, cybercriminals stole more than $1 billion from U.S. businesses in 2017 and that was just one country. Globally, losses were likely much higher because many attacks go unreported or are never discovered. The best way to protect your company against these risks is with cyber crime insurance coverage.
This type of policy covers damages related to a data breach or other cyber crime insurance coverage on your systems that may cause a significant loss for your company and its customers and stakeholders. What’s more, it can also help cover legal fees related to defending against any criminal charges stemming from such an attack as well as help reduce IT restoration costs after an attack occurs. The cost of this type of insurance ranges depending on the size and value of your company's assets.
