Cyber Insurance
Cyber Insurance for Businesses - Protection Against Cyber Risk
Cyber insurance covers financial loss and damages resulting from cyber attacks, phishing, data breaches, and other IT-related incidents. It supports both prevention, incident response, and mitigation efforts, helping businesses restore operations quickly and reduce financial impact.
Cyber insurance for businesses provides coverage against losses and damages resulting from cyberattacks, data security breaches, and other IT-related incidents.
Cybercrime is today a real risk for many businesses. An increasing number are affected by hacking, ransomware, data breaches and other forms of digital crime, and attacks are becoming more sophisticated as companies grow more dependent on IT systems and digital processes.
Cyber insurance provides access to fast and specialised incident response when an event occurs. This includes technical assistance, legal support and crisis communication to help limit the impact and restore operations quickly. At the same time, the insurance covers financial losses that may arise from business interruption, data loss or cyberattacks.
Typical Cyber Insurance Coverage
Data Breaches and Cyberattacks
- Notification Costs: Covers the expenses of notifying customers and other affected parties of a data security breach.
- Assistance in the event of a cyber incident: Includes costs for investigating, remedying, and in some cases, improving security after a cyber incident.
- System failure: Coverage for system failure primarily applies to loss of income and additional costs; data restoration is only covered in the event of a security breach.
Business Interruptions
- Lost Revenue: Covers lost income due to business interruptions caused by a cyberattack. Applies after the waiting period and during a restoration period of up to 180 days.
- Extra Expenses: Pays for additional costs to maintain operations during or after a cyber incident.
- Contingent business interruption: Covers losses resulting from a security breach or system failure at external providers on which the business depends.
Network and System Damages
- System Recovery: Includes costs to restore damaged or destroyed systems and data.
- Hardware and Software Damage: Covers the repair or replacement of damaged hardware and software resulting from cyber incidents.
- Data restoration: Covers the costs of restoring or recreating data lost as a result of a security breach.
Liability for damages
- Third-Party Claims: Protects the business against claims from third parties, such as customers or partners, who have suffered financial losses due to the company’s data security breach.
- Defense Costs: Covers legal fees and other legal expenses related to defending against such claims.
Regulatory Fines and Penalties
- Compliance Costs: Covers the expenses associated with complying with regulatory requirements after a data breach.
- Fines and Penalties: Pays for certain regulatory fines and penalties if covered by the policy.
Cyber Extortion and Ransomware
- Ransom Payments: Covers the ransom paid in the event of a ransomware attack.
- Extortion Costs: Includes costs to manage and respond to cyber extortion, including hiring experts.
PR and Crisis Management
- Reputational Damage: Covers costs related to public relations and crisis management to mitigate damage to the company’s reputation following a cyber incident.
- Customer Support: Pays for services like credit monitoring for affected customers.
Typical Exclusions:
- Intentional Acts: Claims arising from intentional illegal actions or fraud by the company’s employees are typically excluded.
- War and Terrorism: Cyber incidents resulting from war or acts of terrorism are often excluded.
- Other exclusions: May include cyber war or state-sponsored attacks; system improvements or upgrades (betterment); failures in power, network, or telecommunications infrastructure outside the company’s control; known incidents or claims prior to policy inception; loss of cash, securities, or other financial assets; sanctions or nuclear events; and contractual liabilities exceeding standard legal liability.
Additional circumstances:
- Proactive Services: Many cyber insurance policies offer access to proactive services such as security audits, training, and risk assessments.
- Retroactive Coverage: Includes coverage for incidents that occurred before the policy was issued, provided these incidents were not known at the time of issuance.
- Global Coverage: The insurance can be global, providing protection against cyber incidents and related claims in various countries.
- Claims-Made and Reported: Cyber insurance policies are typically written on a claims-made basis, meaning they cover claims made during the policy period and reported within a specified timeframe.
Specific Sectors:
- Tailored Coverage: Cyber insurance can be customized for specific industries, such as healthcare, finance, and retail, with a particular focus on the unique cyber risks each sector faces.
Why Choose Cyber Insurance from BinderGroup?
Cyber insurance is largely defined by how the solution is structured and how it performs in practice when a cyber attack or other incident occurs.
Breach Response
Breach response is structured separately from the main policy limit, ensuring that response efforts do not erode the financial coverage.
Reduced retention
The structure enables immediate initiation of breach response, without unnecessary financial hesitation.
Protection from the First Hour of Loss
Subject to the waiting period being met, coverage applies from the first hour of loss.
Business Interruption
Coverage includes both direct and contingent business interruption, including dependencies on external systems and suppliers.
Access to Specialists
Access to specialised incident response before, during and after a cyber incident via a local hotline.
Transparent Policy Terms
Requirements and conditions are clearly communicated upfront, providing greater predictability in the event of a claim.
Frequently Asked Questions
What should I do if my business is affected by a cyber attack?
Act quickly to contain the impact. Isolate affected systems by disconnecting them from the network and assess the situation.
Engage professional incident response services immediately to initiate mitigation efforts. In the event of suspected criminal activity, the incident should also be reported to the police.
If sensitive information has been compromised, relevant accounts should be secured, and any partners or financial institutions should be notified.
Cyber Insurance through BinderGroup provides access to a dedicated hotline in the event of a suspected cyber incident, as well as specialised professional support throughout the entire incident response process.
Why is breach response central to cyber insurance?
The impact of a cyber incident evolves rapidly. The initial hours are critical to containing the impact, securing data, and restoring operations.
Effective incident response can therefore have a greater impact on the overall loss than the indemnity itself.
At BinderGroup, cyber incident response is covered separately from the overall policy limit, ensuring that the response does not reduce the financial coverage available under the policy.
What do phishing, malware, ransomware, etc. mean?
Phishing:
Phishing involves attempts to deceive users into disclosing sensitive information through fraudulent emails, messages, or websites.
Malware:
Malware refers to malicious software designed to infiltrate, disrupt, or damage systems, data, or networks.
Ransomware:
Ransomware is a type of malware that encrypts a company’s data or systems and demands payment to restore access.
Virus:
A virus is a type of malware that replicates itself by infecting files or programs, spreading to other systems and potentially causing damage or disruption.
DDoS:
A DDoS attack overwhelms a company’s systems or network with traffic, rendering them unavailable.
What does cyber insurance cost?
The price of cyber insurance depends on the individual company’s risk profile and is determined based on a case-by-case assessment.
Factors such as industry, revenue, IT setup, security level, and dependency on systems and suppliers influence the pricing.
Cyber insurance is therefore not a standard product, but a solution tailored to the individual business.
If you would like a specific assessment, you are welcome to contact us.
Terms and facts
Is your business interested in cyber insurance?
If you have any questions about our Cyber Insurance or need help finding the right solution for your business, our experts are ready to assist.
