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With the rising prominence of social networking, online media, digital banking and payments, and much more in our day-to-day lifestyle, companies have become increasingly vulnerable to cyber threats. Cyber threats can emerge from numerous sources like cyberstalking, data theft, etc. A cyber insurance policy helps in dealing with all these cyber risks and threats, and assist companies in mitigating them.
FREMONT, CA: Cyber insurance is a kind of insurance adopted by businesses and individuals for mitigating the internet-based risks like data breaches and many more common risks. Cyber insurance comprises of indemnification from lawsuits associated with data breaches like errors and omissions. It also deals with losses occurred from network security breaches, loss of privacy, and theft of intellectual property.
Various high-profile data breaches made insurance companies provide cyber insurance policies, which typically involve first-party coverage against damage related to cyber attacks, like malware, hacking, theft, and extortion. It also involves public response to an attack.
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Below is a list of some of the benefits that cyber insurance policies offer.
1. Breach Hotline: This service comprises a few elements that are listed below. This service offers
• Attorneys if any legal problems emerge because of a data breach or cyber attack.
• Cybersecurity professionals to assist with forensics, incident response, and repairs.
• Marketing experts that are ready to re-establish the reputation of the company.
2. Damage Control Services: Some insurance companies offer discounted or even free loss control services to the clients. These services, also termed as loss prevention services, can prove to be extremely valuable to point out the holes in the security measures of the company. Some lost control services might also include a summary of the organization’s security practices, approaches for improvements, and many more.
3. Professional Attorneys: An organization might have to face legal action from the afflicted individuals if any damage occurs or records are compromised. In that scenario, the company will require an experienced attorney on its side. The company’s insurer will provide a list of recommended attorneys who are all professionals in confronting cyber-related lawsuits and a massive amount of legal fees.
4. Data Breach Response Resources: Apart from an attorney, the business will have an entire checklist of things that will be required to be done as quickly as possible. Also, it has to notify the affected individuals and the appropriate regulatory authorities to set credit supervising, act quickly with a PR campaign to deal with bad press, and numerous other tasks. The insurer of the company will guide through all these complicated processes and will help the business to make sure that all the work is being completed properly and on time.
Cyber insurance handles more claims as compared to other lines of insurance. Since there are few denials of coverage, the insurer is more curious about seeing the security measures of the company maintained and updated. A cyber insurance policy and the privileges offered by it enable the company to plan for the best and be prepared for the worst such as a data breach incident affecting the company’s clients. However, having an insurer by the side will help companies deal with it wisely.
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