Cyber Insurance: Can It Really Cover the Risks You’re Facing?
1 min read
Summary
Cyber insurance is designed to cover costs that result from data breaches, cyberattacks and IT failures, including both direct costs, such as recovery expenses, and indirect costs, like legal fees and harm to reputation.
However, not all cyber insurance policies cover the same things, so businesses must understand what is (and isn’t) covered before purchasing such a policy.
Policies typically cover the costs of notifying customers affected by a breach, providing them with credit monitoring services, legal fees, and digital forensic investigations.
They may also cover loss of income due to downtime and the costs associated with getting operations back up and running.
While cyber insurance can offer significant relief in the event of a cyber incident, it’s not a substitute for proper cyber security and proactive IT management.