Cyber threats are rising, and bad actors are becoming more sophisticated and taking advantage of the digital, cloud-based, decentralized business landscape.
Building a proactive cybersecurity strategy reduces risk, but to protect your company from the financial ramifications of a cyberattack, you need one more weapon in your arsenal – cyber insurance.
What is cyber Insurance?
Cyber liability insurance is coverage to help offset the costs associated with a successful cyberattack. Traditional liability insurance doesn't cover cyber risk, which is why cyber insurance has become a necessity for modern enterprises. Cyberattacks can result in losses for your organization, but cyber insurance can soften the blow. In fact, the average cost of a data breach was $4.35 million in 2022 - and even higher in the healthcare industry at $10.1 million.
WHAT DOES CYBER INSURANCE COVER?
Cyber insurance can cover costs such as:
- Legal fees and expenses
- Recovery of compromised data
- Ransom payment and extortion costs
- Fines and penalties
- Notifying impacted customers of the security breach
- Repairs to damaged and compromised computer systems
- Lost income due to downtime or service interruption
- Identity theft and credit monitoring services
- Forensic investigation