Why Cyber Insurance is Essential for Businesses
Increasing Cyber Threats
The exponential rise of digital technology has led to an increase in the sophistication and prevalence of cyber threats. Cybercriminals target businesses of all sizes to steal confidential data or interfere with their daily operations.
Financial Impact of Cyber Attacks
The consequences of a cyberattack can be disastrous financially. Data recovery, legal fees, regulatory fines, and lost revenue are a few examples of costs. By protecting against these monetary losses, cyber insurance promotes business continuity.
Legal and Regulatory Requirements
Strict data protection laws apply to many businesses. Legal action and heavy fines may follow noncompliance. In order to help firms manage these risks and comply with regulations, cyber insurance offers a safety net.
What is an example of a cyber insurance claim?
What is the average cyber insurance limit?
Cyber Insurance Coverage Silverfort Policy
First-party Coverage
This aspect of cyber insurance covers expenses that directly affect the policyholder, including costs for:
- Data Breach Response: Immediate actions to manage and mitigate a data breach.
- Business Interruption: Loss of income due to operational downtime caused by a cyber incident.
- Cyber Extortion: Payments demanded by cybercriminals in ransomware attacks.
Third-party Coverage
This covers claims made by external parties affected by the cyber incident, such as:
- Legal Defense: Costs associated with defending lawsuits.
- Regulatory Fines: Penalties imposed by regulatory bodies.
- Settlements: Payments made to resolve third-party claims.