Information security management — Guidelines for cyberinsurance
5 Overview of cyber-insurance and cyber-insurance policy
5.1 Cyber-insurance
Cyber-insurance is a risk treatment option that can compensate the insured against potentially significant financial losses associated with a cyber-incident. Cyber-insurance is provided by an insurer who underwrites risks by signing and accepting liability, thus guaranteeing payment to the insured in case loss or damage occurs.
Cyber-insurance is designed to compensate for losses from a variety of cyber-incidents, for example: data breaches, business interruption, and network damage.
Adoption of cyber-insurance can assist the insured to:
a) minimize the impact of a cyber-incident;
b) provide funding mechanisms for recovery from major losses;
c) assist the return to normal operations; and
d) increase resilience of the insured business to cyber-incidents.
The insured can be required to demonstrate their compliance with any conditions imposed by the cyber-insurance policy relating to the on-going management of the cyber-risk covered.
5.2 Cyber-insurance policy
Contractual terms for cyber-insurance are given in a cyber-insurance policy. A cyber-insurance policy can be either a stand-alone policy or be included as special endorsements as a part of general liability, property or other insurance policy.
Coverage offered by a cyber-insurance policy typically takes a wide perspective and covers a broad range of threats that can cause financial or other forms of impact. Impact can occur through loss of confidentiality, integrity, or availability of information or systems irrespective of the exact cause of a cyber-incident and whether it was accidental or deliberate. Cyber-insurance coverage varies quite a lot between different cyber-insurance products, is not standardized and varies depending on:
a) needs of the insured;
b) limitations posed by laws and regulations;
c) generally accepted market practices;
d) business decisions of an insurer.
Cyber-insurance policies cover certain costs associated with cyber-incidents and can provide access to services that support the insured after a cyber-incident. These services include, for example, evaluating the impact of the attack; implementation of response and recovery plans; legal expertise; forensics expertise; public relations and communications support; customer notification; and restoration of business operations after a cyber-incident.
Cyber-insurance coverage offers the ability to recover some or all internal and external costs of the cyber-incident and varies depending on the specific policies and endorsements selected by the insured.
People also ask this Questions
- What are the aspects of coverage?
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- Are there any regional restrictions on the policy?
- How long after a breach occurs do you have to report it without losing coverage?
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