While there is a lot an organisation can do to cushion itself from cyber-attack, it may not have the capacity to completely take control of its cyber security needs. The following are some of the risks covered by cyber security insurance that make it important:
ü Privacy liability
Cyber security insurance ensures that users who experience losses resulting from breaches or loss of electronically stored data are compensated.
ü Identity (credit information) theft
Cyber criminals are known to steal names and identities of others and use them to make transactions resulting in losses that are paid for by cyber security insurance.
ü Cyber theft and fraud
Cyber criminals who accessbank account details can steal and defraud a person or organisation of their money or digital assets. Cyber security insurance covers a person against such losses.
Private data fallen in the hands of cyber criminals can be a tool for extortion leading to losses which, fortunately, are covered by cyber liability insurance.
ü Network or business interruption
Losses resulting from network or business interruption to the firm and third parties are also paid for by cyber security insurance.
ü Forensic investigation
Firms dealing in cyber security insurance covers the cost of forensic audits of IT systems in case of a breach.
Basically, cyber security insurance is meant to ensure recovery in case of a breach!