What is covered under cyber insurance?

 Cyber insurance coverage can vary depending on the policy and insurer, but generally, it includes the following key areas:

1. Data Breach Costs:

   • Notification Costs: Expenses for informing affected individuals about the breach.
   • Credit Monitoring: Providing credit monitoring and identity theft protection services to affected individuals.
   • Legal and Regulatory Costs: Costs related to legal defense, fines, and penalties arising from regulatory compliance failures.

2. Business Interruption:

   • Lost Income: Compensation for revenue lost due to the disruption of business operations caused by a cyber incident.
   • Extra Expenses: Costs incurred to mitigate the impact of the business interruption, such as temporary IT solutions or operational changes.

3. Ransomware and Extortion:

   • Ransom Payments: Coverage for payments made to cybercriminals to regain access to encrypted data or systems (though this may be subject to policy terms and exclusions).
   • Extortion Costs: Costs related to managing and addressing extortion threats.

4. Forensic Investigation:

   • Investigation Costs: Expenses for hiring cybersecurity experts to determine the cause, scope, and impact of the breach or attack.

5. System Restoration:

   • Data Recovery: Costs associated with restoring or replacing lost or damaged data.
   • IT System Repairs: Expenses for repairing or replacing compromised hardware and software.

6. Crisis Management:

   • Public Relations: Costs for managing the public relations response and communication strategies to handle reputational damage.
   • Notification Services: Services to notify affected stakeholders and the media.

7. Legal and Professional Fees:

   • Legal Fees: Costs for legal advice, representation, and settlements related to breach-related lawsuits.
   • Consulting Fees: Expenses for consulting services to comply with legal and regulatory requirements.

8. Regulatory Fines and Penalties:

   • Fines: Coverage for fines and penalties imposed by regulatory bodies for violations related to data protection laws.

9. Liability Coverage:

   • Third-Party Claims: Coverage for claims made by third parties (such as clients or partners) who have been affected by the breach and seek damages from the insured organization.

10. Network Security:

    • Malware: Costs associated with dealing with malware attacks.
    • Denial of Service (DoS) Attacks: Coverage for losses due to attacks that disrupt network services.

It’s important to review and understand the specific terms, conditions, and exclusions of a cyber insurance policy, as coverage can differ widely among insurers. Organizations should ensure that their policies align with their risk profile and security practices to adequately protect against potential cyber threats.