The purpose of Cyber Insurance policies in the modern world is now known to many people. Insurance companies offering this type of insurance also increased in number in the past years. With the fast-paced changes in the technological world, people taking advantage of it could be everywhere. Business, small to large, began moving forward into applying for a Cyber Insurance Coverages fitting for theirs. 

Similarly to auto insurance, there are also basic minimum requirements for having commercial cyber insurance to protect customers against any cyber threat, from the business old and new to continue or start operating. 

Cyber Insurance Policy Coverages

Since insurance companies may differ from the coverages of their specific policies and here are some: 

First-Party Coverages

This coverage will allow you to recover your financial loss after a hacking attack at your system. First-Party Coverages pay for the notification of the customers regarding the incident. You can also review the First-Party Coverages offered by insurance companies to you. Most First-Party Coverages includes Loss or Damage to Data which answers the payment for the cost for restoring the data loss, destroyed by your company. It also includes the potential costs for hiring the appropriate experts for recovering such data. However, it is essential to note that it will only cover for the possible amount of damages caused by accidents actually listed on the policy such as data breach, hacker attack, or a virus. It also includes Loss of Income and Data Expenses. It covers the loss of income resulting from a Data Breach to recover losses from suffering from a covered accident. 

Cyber Extortion is also covered within the First-Party Coverage. If there's a data breach threatening you to destroy your database, release some confidential pictures and introduce a virus for payment of a specified amount. It also covers the cost for the required notification of all the parties involved in the situation, as well as having credit monitoring services for them. You can also have a Crisis Management policy for the costs that you will be forced to use in the Marketing and Public relations aspect to protect the name of your company. 

Third-Party Coverages

This coverage works a little bit similar to the Bodily Injury Policy of Auto Insurance. It works to cover all financial costs incurred by the policyholder to the claims by any people or companies who got injured as the result of your company's incompetence and failure to act on such matters. It includes Network and Service Liability, which can be used to cover any costs for claims against your business if it caused negligent acts, errors or omissions resulting in a denial of service attack. It can also cover the claims made by customers on your failure to protect their data. Another one is Media Liability for libel, slander and defamation. You must also remember that the lawsuit for these cases will be covered only when they happen online due to your doing. The last one is for regulatory proceedings covering you for any fines and regulations imposed by the agencies securing regulatory proceedings. You can also hire a lawyer to assist you throughout the proceedings. 

Why is it Important?

There are still businesses who still doubt the services or the benefits of cyber insurance and continue to operate without one. Why is it important? Cyber Insurance is one way to protect you from cyber-attacks or internet-based threats, especially during this digital age. Data breaches can cost your business too much, not to mention the problems it will bring to you and the customers who might get involved. The belief that simple general liability insurance can protect you from risks like these is a complete myth. 

Aside from the financial costs that you may suffer from an actual data breach, you should also consider the claims of your customer against you. One data breach incident might cost you your whole business, from the data breach, customer's claims, and the lawsuit that you need to attend to because of these claims, together with the fines that may be imposed upon you by the regulating agencies. 

During this modern age, while almost everyone is utilizing the internet for their respective wishes not all have insurance coverages against cyberattack. It is used for various tasks including as storage of confidential information that is not allowed to be exposed from the wrongdoers. In this time, it is your responsibility to protect your business and not risk the customers who trusted you with their data. Getting insured not necessarily costly, you can get cheap business cyber insurance online quite easily these days, but what matters is that you are protected when something happens. The protection and the peace of mind it can bring for you and your customers worth everything.