How to choose the right cyber insurance coverage.
Protection, prevention and peace of mind should be at the core of every good cyber insurance policy.
The right cyber insurance makes all the difference.
Not all cyber insurance policies are the same. The differences between cyber policies can greatly impact your claims and your overall safety. Not having the right cyber insurance coverage can leave you or your business exposed to unnecessary risks or on the hook for unexpected costs.
It’s critical to find a cyber insurance policy that reduces cyber risks and keeps your digital assets safe. Having a comprehensive and proactive cyber policy ensures protection from growing and evolving digital risks with additional breach response services.
What to look for when choosing a cyber insurance policy.
Making an informed choice about cyber insurance often depends on the wording of the cyber policy. Here are some of the items to look for and ask about when comparing policies.
- Comprehensive base policy form
- Data recovery costs
- Separate limit for incident response costs
- No widespread event or system failure exclusions
- Combined “pay on behalf of” and reimbursement coverage
- Rapid response from cyber experts
What does cyber insurance cover?
Cyber insurance coverage varies between the policy and the provider. The most basic cyber insurance coverage simply helps to offset the costs related to online fraud, identity theft or cyber extortion.
In today’s complex digital environment, effective cyber coverage needs to go beyond just covering losses. It should also provide personalized support to help you or your business recover quickly and completely by providing ID or hardware restoration services, ransom negotiations, counselling for any trauma related to the incident as well as coverages and access to experts for legal or recovery costs.
The best cyber insurance policies will offer preventive tools, resources and technical expertise to prevent threats and protect your digital assets from being at risk in the first place.
Cyber insurance services and coverage
Business cyber insurance coverage
Businesses of all sizes are increasingly exposed to cyber threats and the fallout costs are adding up. If you have limited cyber security protection, it’s critical to get comprehensive cyber coverage that covers a range of financial and operational losses.
Here are some cyber services and coverages you should consider for your business:
Breach response
Breach response experts will contain the cyber incident and re-secure your network if needed. No claim necessary.
Hacker damages
Costs to repair, replace or restore websites or electronic data.
Insider threats
Damages that result from malicious acts by an employee to either yours or any third-party system.
Cyber deception
Money wrongly transmitted to a third-party from a deception scheme, also known as social engineering.
Reputation damage
Coverage to help you manage your reputation following a cyber breach or attack.
Loss of business
Lost profits if a cyber incident interrupts your business operations.
Legal and regulatory costs
Legal costs due to regulatory fines or requirements to notify customers.
Third-party liability
Costs associated with claims against you for a breach of any privacy law with respect to protection of third-party data.
Online and media liability
Protection if your online content infringes on someone's IP rights including defamation, libel and slander.
Bricking costs
Costs to replace damages to your hardware, in addition to replacement and recovery of data.
Cyber services to data breach victims
Costs of services to affected individuals including ID restoration management and additional services.
Notification costs
Costs to provide notification of a data breach to affected individuals.
Why small businesses need cyber insurance
Learn more about the common cyber threats facing small businesses and which cyber coverage can best protect your assets.
Personal cyber insurance coverage
Personal cyber insurance policies generally cover common risks, such as identity theft, online extortion and online financial fraud.
When choosing a policy for your home or family, here are some of the services and coverage items you should look out for:
Breach response
Breach response experts will contain the cyber incident and re-secure your network if needed. No claim necessary.
Hacker damages
Costs to repair, replace or restore websites or electronic data as a result of a cyber attack.
IoT devices
Costs to repair, replace or restore IoT devies as a result of a cyber attack.
Systems recovery
Costs to repair, replace or restore personal systems as a result of a cyber attack.
Cyberbullying
Covers losses resulting from cyberbullying, including professional cybersecurity consultation and cyber trauma costs.
Cyber deception
Loss of money wrongly transmitted or paid to a third-party from an online scam, also known as social engineering.
Identity theft
Direct financial loss to an insured caused by identity theft.
Cyber extortion
Professional assistance to respond to a ransomware attack and payment of ransom when approved up to the sublimit.
Forensic review
Forensic costs associated with a data breach involving Personally Identifiable Information.
Legal review
Legal review costs due to a data breach involving Personally Identifiable Information.
Services to data breach victims
Costs of services to affected individuals including ID restoration management and additional services.
Notification costs
Costs to provide notification of a data breach to affected individuals.
Demystifying personal cyber insurance
Watch the webinar to learn more about personal cyber insurance coverage.
What’s not covered by cyber insurance?
Like any other type of insurance, cyber insurance has limitations and exclusions. Most often, leaving out certain risks like intentional misconduct, known vulnerabilities or business losses that are difficult to quantify, like future profits.
If you’re concerned about coverage for a specific risk, it’s a good idea to review your policy’s terms and conditions or speak to your Broker to understand what’s not covered and how it could impact you.