Page 39 - Insurance Times October 2019

escalating awareness of various cyber risks, resulting largely Y Losses or expenses associated with prosecution and
in the acceptance of cyber liability insurance policies. defense cost related to identity theft
Y Deceitful online transactions in one's bank account,
Having a cyber insurance policy makes a credit or debit card or e-wallet

smart business sense Y Expenses incurred on counseling services treatment
Cyber insurance policies have been meticulously designed Y Claim for damages against third-party for data and
to help an organization alleviate risk exposure by privacy breach
compensating the costs involved with recuperation
Y Loss from cyber extortion and transportation for
following a cyber-related security breach or any such event.
attending Court summons
As the hazardous atmosphere of cybercrime continues to
develop, the battle between organizations and
Cyber attackers are evolving and adapting their techniques
cybercriminals can often feel like an ugly brawl. Companies
at a quicker pace than defenders. They are also
and business organizations today need to be financially
weaponizing and field testing their evasion strategies,
prepared in order to reduce the impact of cyber-attacks and
exploits, and skills so they can launch attacks of increasing
data breaches. This is why having a cyber insurance policy magnitude. So when adversaries unavoidably wallop their
makes a smart business move.
organizations, will defenders be able to battle and how
swiftly can they recover? Well, that certainly depends
Cybercrime has increased every year since people try to
mainly on the steps they're taking today to fortify their
take advantage of susceptible business systems. Attackers
security posture against cyberattacks.
are often on the lookout for ransom - 53 percent of cyber
attacks resulted in damages of $500,000 or more. Cyber However, it is even harder to measure the requirement and
insurance with its origin in Errors & Omissions (E&O) adequacy of cover in case of cyber extortion. Cyber
Insurance started flourishing in 2005, with the total value insurance policies can effectively cover widespread
of premiums projected to arrive at $7.5 billion by the year incidents ranging from the cost of dealing with the fallout
2020. About one-third of the U.S. companies presently of data breaches to paying fines to hacking and cyber
purchase some sort of cyber insurance policies, according extortion. It has been pointed out by the observers that
to PwC. these risks do not remain static and since cyber attacks are
often associated with human behavior, it can be hard to
The above-numbers evidently state that quantify the risk.
organizations are considering a special
Noticeable global cyber insurance trends
need for cyber insurance, but what does Considering the nature of its business that generates
it cover? enormous amounts of data on a regular basis, certain

In general, cyber insurance policy covers the expenses
associated with the first parties as well as claims filed by
the third parties. A typical cyber insurance plan should
come with common reimbursable expenses. Thus, in terms
of picking between the two differently available cyber
insurance policies, find out if these aspects are covered:
Y Any financial loss resulting from being a victim of email
spoofing and phishing

Y Reputational liability, including claims alleging invasion
and defamation of privacy

Y Restoration cost to retrieve computer program or data
damaged by the entry of malware

The Insurance Times, October 2019 39