EVERYTHING YOU
NEED TO KNOW ABOUT
CYBERINSURANCE
Any crisis that can befall a person or company has an
insurance available so with the advent of cyberintrusion,
the emergence of cyberthreat insurance is a natural – and
increasingly necessary – progression. Ricardo Arroyo,
Senior Technical Product Manager and ThreatSync Guru
at network security company WatchGuard Technologies,
discusses everything you need to know about
cyberinsurance: what it is, why your business may need it
and the caveats of which to be aware.
Ricardo Arroyo, Senior Technical Product
Manager and ThreatSync Guru at
WatchGuard Technologies
W
What is cyber insurance?
As with all other types of insurance,
cyberinsurance is meant to provide
policyholders with relief, mostly financial,
in the event of a cyberintrusion. Some
cyberinsurance is offered as an
additional coverage added to an existing
policy while some is offered as a stand-
alone policy.
Each policy is customisable to the needs
of the policy holder. This of course makes
the cost variable. The core tenet of
cyberinsurance deals with covering the cost
of dealing with a cyberattack. This typically
includes, but is not limited to, the following
types of coverage:
84
• Data privacy: Coverage to offset the
cost of losing personal data
• Loss or breach of data: Coverage to
offset the cost of losing confidential
company data
• Remediation costs: Coverage
to offset the cost of dealing
with a cyberintrusion such as
customer notifications and forensic
investigations
• Regulatory fines and/or penalties
associated with data breaches:
Coverage to offset the cost of fines
or penalties enforced as part of
federal, state and local laws dealing
with data breaches
• Cybersecurity incidents not
involving data breaches: Coverage
to offset the cost of non data breach-
related cyberincidents
• Business and contingent business
interruption: Coverage to offset
the cost of any service interruption
caused by the cyberintrusion (e.g.
website offline)
• Cyberextortion: Coverage to offset
the cost of payments made to
cybercriminals for the return of stolen
intellectual property or personal data
• Media liability: Coverage to offset
the cost of infringement of intellectual
property, copyright/trademark
infringement, libel and slander
Many insurance providers offer higher-
end services or advisers to ensure
Issue 07
|
www.intelligentciso.com