Three critical components of a cyber policy | Insurance Business
Modern cyber policies provide coverage against a vast array of digital hazards. As hackers change tactics, insurance companies are forced to evolve in order to make sure insureds are protected against emerging risks.
Although cyber criminals seem to be one step ahead of the authorities, leading cyber insurance companies are doing a good job of creating broad and forward thinking policies that protect a client in the event of a cyberattack.
Here, Insurance Business looks at three of the critical components of a modern cyber policy.
“Cyber extortion usually involves an attack, or the threat of an attack, against a business which includes a demand for money,” said Jeremy Barnett, senior vice president of marketing at NAS Insurance Services. “Online extortion can take many forms and could involve a denial of service attack or the encryption of the insured’s data and holding it hostage. This part of the policy offers coverage for extortion expenses incurred and extortion monies paid as a direct result of a credible cyber extortion threat.”
Maintaining a successful and positive brand image is critical for a business of any size in any industry. Consumer perceptions go a long way to defining the success of a business, particularly in the modern era. NAS’s BrandGuard® feature provides protection for a company’s reputation in the event of a cyberattack.
This part of the policy offers coverage for lost revenue incurred as a direct result of an adverse media report or notification to affected individuals following a security breach or privacy breach.
Network Asset Protection
This offers coverage when costs are incurred to recover and/or replace electronic data that is compromised, damaged, lost, erased or corrupted due to accidental damage or destruction of electronic media, or computer hardware or administrative, or operational mistakes in the handling of electronic data.
“Coverage also extends to business income loss and interruption expenses incurred because of a total or partial interruption of an insured computer system directly caused by any of the above events,” Barnett explained. “Dependent Business Interruption is an added enhancement to the network asset protection coverage component that covers a business’s loss of income and interruption expenses incurred as a result of a third party provider’s system going down.”