Cyber Insurance 101

Cyber Insurance 101: What Every Business Should Know

Cyber insurance is quickly becoming a must-have for businesses of all sizes. As cyberattacks grow more sophisticated, having a plan in place to protect your company from financial fallout is no longer optional—it’s essential. But understanding your cyber insurance policy and how it works alongside your IT infrastructure is just as critical as having coverage in the first place.

What Should Your Cyber Insurance Cover?

When reviewing your cyber insurance policy, make sure it addresses these key areas:

1. Data Breach Response
   Does your policy cover the costs associated with data breaches, such as forensic investigations, legal fees, and customer notifications?
2. Ransomware Attacks
   Will the policy help with costs like ransom payments, recovery efforts, or business interruption due to ransomware?
3. Third-Party Liability
   Does it protect you if a vendor or partner holds you accountable for a cyber incident that impacted them?
4. Regulatory Fines
   If you’re fined for failing to meet compliance requirements, does your policy cover it?
5. Business Interruption
   Is there coverage for income lost due to downtime caused by a cyberattack?
6. Social Engineering Fraud
   Will it help recover funds lost to phishing or other manipulation tactics?