It is the fact & everybody accepts that cyber breach is inevitable & sooner or later, Every business would face the heat. With the given situation in digital security problems, Businesses are starting looking into mitigating risk, recovery plan on security breaches. Cyber insurance is a new business not quite popular as of now but business sees value in insuring their digital rights & assets.
So, What is Cyber Insurance?
Cyber insurance is a growing segment of the insurance market. It helps companies avoid incurring huge losses from database security breaches. There are many clauses in the cyber insurance & it is similar to any other insurance. The more you pay the more you get.
Cyber insurance can include first-party and third-party coverage. The first-party coverage mitigates the expenses your company incurs, which can include legal fees, system repairs, lost income and public relations
How does cyber insurance work?
Most insurance companies will ask how your systems are already protected from viruses and hackers, and some will also do onsite audits. Clients are expected to understand the risks of a security breach and to recognize scams such as phishing emails.
Cyber insurance could cover following major components:
- Privacy and security liability
- Hardware repairs and downtime
- Ransomware settlement
- Media/web content liability
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