With most businesses relying on the internet to run their operations, cybercriminals have become more active than ever. Cyberattack victims typically face financial losses that can be detrimental to their business. As a business owner, you could be susceptible to cybersecurity risks, which is why you must invest in cyber insurance. Let us learn more about cybersecurity insurance coverage in this article.

Cyber insurance is a contract between an individual or business and an insurance company. Under the contract, the insurer promises to pay a pre-specified sum insured to cover financial losses resulting from cyberattacks, identity theft, cyber extortion, online shopping scams, cyberbullying, etc.

A typical cyber insurance policy covers the following:

• Theft of funds: Cyber insurance covers losses from unauthorised access to your finances, including bank accounts, credit cards, debit cards, digital wallets, etc. Any legal costs necessary to prosecute cybercriminals are covered as well.

• Identity theft: Hackers may use your personal information to commit fraud. In such cases, the insurer indemnifies you for expenses associated with credit and identity monitoring services as well as legal and psychological assistance costs.

• Malware decontamination: Malware decontamination is caused when malicious software gets installed in your computer systems. Here, the insurer covers the cost of hiring experts to restore company or personal data, provided you file the claim within the specified timeframe.

• Cyberbullying: Cyber insurance policy also covers the legal fees for civil proceedings against criminals guilty of cyberbullying or cyberstalking. It also covers the costs associated with any temporary actions you may need to take to safeguard yourself from their actions.

• Cyber extortion: Cyber extortionists hold sensitive information for ransom. Data may include customers’ information, private emails, secret projects, etc. The policy indemnifies you for ransom paid up to the indemnity limit.

• Online shopping: If you are a victim of online shopping scams, your cyber insurance covers pure financial losses after failed attempts at getting refunds. However, you must report the fraud to your bank or credit card company within 48 hours.

• Social media liability: If a third party prosecutes a policyholder for defamation, copyright or privacy rights breach arising from media activities, a cyber insurance policy reimburses the legal costs.

• Online sales: As a business owner, if a third party has not compensated you for your non-commercial goods, cyber insurance can help. It covers direct and pure financial losses as long as you cannot access the goods.

• Smart home cover: Thanks to the Internet of Things (IoT), smart homes have become increasingly popular. Cybersecurity insurance coverage includes expenses associated with hiring IT experts to decontaminate smart home systems.

• Privacy and data breach liability: If the policyholder is legally liable for any third-party claims, the same is covered by a cyber insurance policy. The policy also pays for legal costs you may incur for damages caused by a third party.

Cybersecurity attacks can cause substantial financial losses and mental stress. Cyber insurance covers you against monetary losses and relieves you of the stress caused by such losses. It is a crucial investment that everyone must have in today’s world.