Question

Role and Coverage of Cyber Insurance

Discuss the factors that should be considered in recommending cyber insurance to an organization.

Answer 1

Role and coverage of Cyber Insurance:

Cyber insurance is developed to prevent business organisations from the possible effects of cyber attacks. Cyber insurance covers the all the cost and expenses which the victim faces due a cyber attack.The loss could be data theft , or losing a client due to the cyber attack or leakage of company resources.

The typical coverages which comes under the cyber insurance are the Response to breach events , Regulatory coverage , Liability coverage , Cyber extortion and deceptive / fraud transfer , Institutions loss of income or extra expenses , Data replacement / recovery cost .  

The benefits of Cyber insurance includes Structured and Planned security audits to detect and resolve the cyber threats the company might be viable to. Post Incident management service helps company's to recover from the incident and enquire about the cause which led to such attack. All the incidents which took place leading to the attack are documented and reported to mitigate the issues and lead to a solution for optimal steps to be take in future.Thus we could say that cyber insurance does addresses most of the cyber risks.  

Some of the major factors to be considered while recommending cyber insurance to any organisation is the amount of risk coverage associated with the cyber insurance policy organisation is planning to adopt , other thing is to make sure that the cyber insurance policy is feasible in terms of security risks associated with the organisations work.