Cyber Insurance
Protect the Future of your company
Cyber Insurance is a standalone policy designed to recover losses connected to a cyber incident. Even though traditional Commercial insurance policies may recover losses related to natural disasters, fire, and other common risks, those policies may not necessarily cover physical damages caused by a cyber incident, the specific costs associated with responding to a cyber incident, and or be sufficient due to the magnitude of a cyber incident.
More than 3,5 Million Cyber Insurance policies are in force in the United States, protecting many companies and making this insurance class a mainstream product. Companies of all sizes should have "cybersecurity by design", architecting, and maintaining their IT systems to provide superior protection. Unfortunately, there are so many possibilities to getting hacked and impacted by a cyber attack, from impersonation and social engineering to exploiting a vulnerability, which makes Cyber Security insufficient to guarantee 100% a company can avoid a cyber incident. The best protection approach is to find the right balance to invest in cyber security and cyber insurance.
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Cyber Insurance is perfect for startups and midsize enterprises, which may not have dedicated information security resources like large organizations. Hiring Cybersecurity experts at the last minute when you are under a cyber attack may be costly; some Insurers offer "First responders" with Zero deductible, so you can rely on this first line of IT security support to make sure you are under attack and to contain the incident as soon as possible without any out of pocket cost.
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We partner with a range of innovative Carriers specialized in Cyber Insurance, assisting startups from early-stage pre-revenue stages with one founder to midsize enterprises with thousands of employees and billions of dollars in revenue.
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Cyber insurance is not all equal; the basic policy will cover first-party losses incurred by your company, such as the expenses to hire a cyber security team to respond to the incident, the payment of ransomware to the hackers if needed to contain the damages, and your losses with business interruption, for example. It also covers third-party expenses such as data breach liabilities. In addition to the total amount available to recover the losses (Aggregate Limit), each Cyber Insurance policy will have sub-limits that may differ from the total amount. It's critical to understand these details, exclusions, and other provisions not only to get insured with the right coverage but also to ensure your application is accurate on the technical details of your cyber security policy and systems to exercise your claim if needed.
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Cyber Insurance policies may also be bundled with Media Liability and Crime Insurance, which extends coverage for fraud and IP Infringement liability, for example. If your business provides technology services, then Cyber Insurance is usually combined with professional liability insurance called Technology Errors & Omissions or "Tech E&O," protecting your company from liabilities arising from a vulnerability or malfunction of your system; check our Tech E&O section to learn more. Suppose you are in healthcare, financial services, or digital media. In that case, we also offer Specialty Insurance that expands the Professional liability according to your field and included additional specific coverages to avoid any gap. Check our Industry Solutions section
Cyber Insurance
Comprehensive Protection
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Respond to the Cyber Incident with coverage to hire cyber security specialists to contain the attack and bring your system back.
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Pay the Ransomware if necessary to contain a data breach and downtime losses
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Manage the Crises with appropriate data breach management, notification, and regulatory compliance
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Recover income losses related to business interruption due to the Cyber incident
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Protect your Company against third-party liabilities related to the data breach or any harm caused by the cyber incident
Schedule a free Zoom Meeting consultation to discuss your specific protection needs and insurance requirements. Coverage is subject to underwriting and the terms, conditions and limits of the policy issue, and may vary from Insurer to Insurer.
Cyber Incident Typical Expenses
Typical expenses associated with a cyber incident include:
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Incident Response : Costs to hire experts in Cyber Security to respond to the incident, contain the damage and bring your systems back to normal operations.
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Data Breach Notification: Costs for notifying affected individuals and providing credit monitoring services. Lawsuits against your company due to a data breach.
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Legal and Regulatory Fines: Legal fees, regulatory fines, and penalties for non-compliance with data protection laws.
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Forensic Investigation: Costs to determine the cause, scope, and impact of the breach.
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System Repair and Data Recovery: Expenses for repairing affected systems and recovering lost data.
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Business Interruption: Loss of revenue due to operational downtime.
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Public Relations: Costs for managing reputational damage and communication efforts.
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Ransom Payments: Payments made in response to ransomware demands.
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These costs can vary significantly depending on the severity of the incident and the size of the organization.
Cyber Risk Quantification
Cyber Risk Quantification (CRQ) is a process that evaluates and estimates the potential financial impact of cyber threats on an organization. FAIRTM (Factor Analysis of Information Risk) is the golden standard methodology to decompose the Cyber Risk in Loss Event Frequency and Loss Magnitude based on contact frequency, probability of action, threat capability, your cyber security protection and estimations of loss magnitude based on your company's profile.
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For larger organizations, calculating the cyber risks in financial terms may require advanced Cyber Risk Quantification Platforms (CRQ) to standardize and compare the cyber risks between different locations and monitor the outcome of cybersecurity investments to lower the risk for specific scenarios throughout the time. Some platforms go beyond the adoption of FAIRTM methodology, automating the inputs for the calculation with data from Cyber Threat Intelligence (CTI), running advanced statistical simulations, and analyzing historical insurance claims to improve the precision on the estimation of the Likelihood and the Magnitude of a cyber incident. CRQ Platforms are essential for Mid-Large Enterprises to make wise decisions about Cyber Insurance and understand the tradeoffs of Cyber Security investments versus Cyber insurance. It also enables C-Level discussions about the impact of a cyber incident to assist Cyber Security Board Committees in deciding about the risk tolerance of the organization and monitor to properly escalate and disclosure to the investors in case the threat landscape changes or a cyber attack is material. Since December 2023, the US Securities and Exchange Commission (SEC) implemented new rules requiring public companies to disclosure material cybersecurity incidents on Form 8-K within four business days, having a CRQ Platform is a key component to elevate Cyber Risk Management practices as part of the Enterprise Risk Management (ERM) and Governance Risk and Compliance (GRC) policies, and to communicate Cyber Incident materiality in a timely fashion properly.
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One Critical component to obtain good outputs of CRQ Platforms is to properly run Risk Assessments according to the profile of your company leveraging frameworks like ISO 27001 or NIST, which may require the engagement of the IT and Cyber Security team in evaluating the maturity of the Cyber Security controls in place. For Startups and Midsize companies, on-going monitoring via CRQ Platforms and advanced risk assessment may not be available, one alternative approach to quantify risk is to adopt an "Outside-in" analysis that takes in consideration what is visible from the outside related to your security posture and estimate your risk in historical insurance claims.
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Zyber Insurance is equipped with expertise in Cyber Risk Management, working together with Strategic Partners to provide solutions for Cyber Risk quantification according to your needs.