For a start, it’s comprehensive. The fallout from a cyber attack can last long after the incident itself, so it pays to make sure your business is adequately covered. Here are the key features to look for in a cyber insurance policy.
A cyber policy should be able to respond to a range of cyber events, such as unauthorised access, ransomware and denial of service attacks. The best cyber insurance policies should include first party and third party cover.
Just as health insurance policies differ in their cover, so do cyber policies. When choosing cyber insurance, it is important to consider the industry you are operating in. The health industry, for example, has the highest cost per lost or stolen record, so companies in this field should take this into consideration when selecting their policy.
It’s also important to note that technology is advancing at a speed that is difficult for some insurance companies to keep up with. As a business, it could mean that you may not be covered for the most recent threats and developments, so it pays to check the credentials of your insurance provider too.
Read more: FAQ guide to common cyber insurance questions
Your first party cover should include cover to help you manage the cyber incident itself as well as any direct financial loss your business may experience as a result.
Key features to look for:
Why these features?
Cyber liability insurance, or third party cover, will help cover the damages other people experience as a result of a cyber attack on your business. This could be at the time of the incident or years down the track.
Key features to look for:
Why these features?
“Legal and investigation costs in a cyber claim can mount up quickly and become substantial, which is why this benefit is key in any cyber policy,” says Claire Holt, Senior Broker at BRAVEday. “The ability to call in IT professionals early in any cyber event to minimise and mitigate damage is crucial.”
While there is some overlap between business insurance, liability insurance and crime insurance, cyber insurance is the only cover you can get that will tick all the boxes when it comes to online security and crisis management.
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Business insurance | Liability insurance (general) | Crime insurance | Cyber insurance |
| FIRST PARTY COVER | ||||
| Network interruption | No | Yes | ||
| Cyber extortion | Sometimes | Yes | ||
| Data recovery/restoration | Yes | |||
| Employee sabotage of data | Sometimes | Yes | ||
| Virus/hacker damage to data | Yes | |||
| Denial of service attack | Yes | |||
| Physical data | Sometimes | Sometimes | ||
| Reputational loss | Sometimes | Yes | ||
| THIRD PARTY COVER | ||||
| Unauthorised access of personal information | Sometimes | Yes | ||
| Unauthorised access of business information | Yes | |||
| Media content (e.g. distributed content that amounts to piracy, slander, theft of ideas, or invasion of privacy). | Sometimes | Yes | ||
| Contamination of third party data | Sometimes | Yes | ||
| Third party denial of service/access to data | Sometimes | Yes | ||
| Corrupted, destroyed or modified data | Yes | |||
| Physical theft of hardware | Sometimes | Yes | ||
| Legal costs (advice and representation in the event of an investigation) | Sometimes | Yes | ||
| Repair of other company reputation (e.g. PR costs) | Sometimes | Sometimes | ||
| Notification costs | Sometimes | Yes | ||
| Monitoring costs | Sometimes | Yes | ||
| Fines | Sometimes | Yes |
[Source: AIG]
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