What is Cyber Insurance?
Bolster your digital security and privacy with cyber insurance
Your first line of defense
Hacks, malware, cyber attacks, phishing scams, and even human errors can interrupt operations, compromise data, and hurt your business. Cyber insurance steps in to cushion the financial blow of these events to help save your organization money and protect its reputation. It covers costs like data recovery, lost income, ransomware payments, and legal fees in the case of a cyber incident.
While no insurance can prevent an attack, it does provide support after the fact to help businesses recover and bounce back. It's a key part of managing risk beyond the factors that your organization can control.
How we help
Cyber insurance can be confusing. There’s a lot to keep in mind here. That’s why Trend is partnering with a number of organizations in the space to help arm you with the knowledge you need to make an informed decision when seeking out a cyber insurance policy.
Though we do not provide cyber insurance, our partners are reliable vendors that can help establish protection for you and your organization.
What kinds of cyber insurance are there?
First-party coverage against the loss that your business incurs from incidents such as:
- Data destruction from malware, hacking, or human error
- Data extortion through ransomware
- Theft of funds through fraudulent transfers
- Legal expenses and costs related to the incident
Third-party coverage protects your business from liability and claims from outside parties after incidents, such as:
- Clients and vendors impacted by breaches
- Regulatory investigators
- Anyone seeking damages through court orders
Both types of insurance take care of regulatory fines, attorney fees, damages, and settlement payments as well as other additional expenses.
What should you look for in a cyber insurance policy?
Focus on the fine print to understand your coverage thoroughly. Double-check limits, definitions, and exclusions to assess what events are covered and to what extent. Pay attention to any waiting periods and recovery times. Review details on contingent business interruption coverage. And ensure you understand deductibles and out-of-pocket costs to avoid surprises later.
Be sure to check that any potential policies cover the following:
- Forensic investigation of breaches
- Notification costs, ransomware payments, legal expenses, regulatory fines, and penalties
- Fraud, theft, and cybercrime losses
- Business interruption income loss
- Credit monitoring and identity theft support
- Reputational damage control
- Data recovery services and damaged system repairs
Not all cyber insurance policies will cover business interruption coverage. For those that do, find out what your broker considers a loss and under which circumstances your policy would come into play. These attribute are all considered under BI coverage:
- Coverage limits
- Insuring clauses
- Definitions and exclusionsWaiting and recovery periods
- Retention or deductibles
- Contingent business interruptions
Further, keep in mind that these cyber risks are typically excluded or not covered under certain policies:
- Pre-existing conditions, such as prior breaches and poor security measures
- Cyber attacks by nation states, war, or terrorism
- Physical damage
- Technological improvements
- Human error
- Lost electronic devices
What factors can affect the cost of my policy and/or premium?
- Established risk assessment or security protocols in place
- Formal employee security and awareness training program
- Industry-specific risks
- Claims history
- Business size
- Company revenue
- Coverage type and policy provisions
- Geographic location & remote presence
- Regulatory environment
- Amount of sensitive data being stored
- Third-party liability
There are several options to consider when it comes to cyber insurance
Lean on your broker to help you decide what coverages will be best for your organization.
Data Breach
Covers costs associated with a data breach (ex. notification expenses, forensic investigation, credit monitoring)
Cyber Extortion
Protects you against costs related to cyber extortion (ex. ransom payments)
Business Interruption
Covers costs associated with a data breach (ex. notification expenses, forensic investigation, credit monitoring)
Cyber Liability
Protects against law suits and legal expenses that result from a cyber attack (ex. third party claims)
Bolster your digital security and privacy with cyber insurance