The purpose of Cyber Insurance is to mitigate losses from a variety of cyber incidents such as data breaches, business interruption and network damage. Instituting a Cyber Insurance program could help reduce the number of successful cyber attacks by promoting the implementation of preventative measures and promoting best practices based on the current level of self-protection.
Many companies, however, choose to forego Cyber Insurance policies citing the perceived high cost of those policies, confusion about what they cover and the uncertainty that their organization will suffer a cyber attack. As reported daily in news around the world, cyber attacks are a very real and every growing threat. Cyber Risk must be managed not only by implementing a strong cyber security program, but also by acquiring a cyber insurance policy to further protect your organization from the cost of losses due to a cyber breach.
Traditional commercial general liability and property insurance policies typically exclude cyber risks from their terms, leading to the emergence of cybersecurity insurance as a â€œstand aloneâ€ line of coverage.Â That coverage provides protection against a wide range of cyber incident losses that businesses may suffer directly or cause to others, including costs arising from data destruction and/or theft, extortion demands, hacking, denial of service attacks, crisis management activity related to data breaches, and legal claims for defamation, fraud, and privacy violations.
The development of new cyber risk scenarios, models and simulations could help promote a further understanding of how a cyber attack can cross infrastructure sectors and where opportunities for risk mitigations might exist.
Protecting yourself and your organization has never been more important and as system breaches are reported daily, urgency is of the essence.
For more information on Cino Ltd’s Cyber Security and Cyber Insurance programs, call us at 516.932.0317 ext 312 or email us at [email protected]