Now we will discuss the information on who offers cybersecurity insurance. Also, let us know how important it is to have cybersecurity insurance.
Offering A Cybersecurity Insurance
Businesses are increasingly turning to cyber insurance. It is to protect themselves against the risks of a data breach.
This type of policy is often underwritten by companies that specialize in providing coverage. For information technology-related risks.
So policies typically cover expenses incurred. When dealing with a data breach, such as the following:
- notification costs
- credit monitoring
- legal fees
- regulatory penalties
So Cybersecurity insurance can be helpful. in cases where businesses are required to notify customers.
When there is a data breach involving personally identifiable information (PII). This
is a requirement under the federal Fair Credit Reporting Act.
If a breach affects more than 500 individuals. In this case, businesses must provide notice to their affected customers.
Data Breach Insurance
Data breach insurance is a type of cyber insurance. It covers expenses associated with a data breach.
In cases where business is unable to meet notification requirements. Also, data breach insurance may help pay notification costs and other expenses.
Such as credit monitoring and legal fees. This type of policy typically covers costs if negligence is not a factor in a breach.
Cyber Liability Insurance
Cyber liability insurance is a different type of policy from data breach insurance. So the cyber liability insurance covers costs related to cyber crimes committed against a business.
This includes fines and penalties from government agencies or lawsuits from customers. Also, vendors are affected by the data breach.
So this cyber liability insurance is also known as cybercrime coverage or cyber extortion coverage. Now let us discuss what is cyber extortion coverage?
What Is Cyber Extortion Coverage?
Cyber extortion coverage is another type of cyber insurance policy. It typically provides coverage for expenses associated with an extortion attempt.
An extortion attempt can be made through hacking or ransomware attacks. In these cases, the hope is that the company will pay the extortionist.
It is to avoid any damage or further harm to its systems and data. So let us discuss what a ransomware attack is?
What Is Ransomware Attack?
A ransomware attack involves hackers holding computer systems hostage. Until they receive payment in exchange for access to the system again.
A ransomware attack can be carried out on businesses. Also, at home users alike through software such as CryptoLocker or CryptoWall 2.
Which encrypts your data and demands payment. to decrypt it and unlock your computer system again which makes it impossible.
It is to access your files without them being decrypted. Also, this can cause problems if you have important files on your computer.
Moreover, you do not have backup copies of them on offsite servers. Which you can get back if you had paid up
But if you do not pay up then basically all your files are lost forever. Unless you know how to decrypt them yourself which requires some sort of hacking knowledge.
Also, if someone else has managed to get hold of the decryption key. Then you would get that person to decrypt them for you.
But again that requires some hacking knowledge. Unless you are willing to pay someone else who knows how to decrypt them.
