Cyber Insurance
Cyber risk is a critical focus for modern corporate risk management services. In less than five years, cyber threats have surged to the top of global business risks. The rise in digital incidents and regulatory shifts highlights the urgent need for robust cyber insurance to protect enterprise assets.
What does it cover?
While a commercial property insurance policy secures physical assets, cyber insurance protects digital infrastructure. It generally distinguishes between two broad loss categories: “first party” (direct losses suffered by the insured) and “third party” (liability claims brought by external parties due to the insured’s conduct).
First Party coverage.
First-party coverage includes losses incurred directly by the insured. For example, costs related to investigating the cause of a data breach or security incident, costs associated with restoring business services, the cost of notifying affected individuals, credit monitoring services, costs incurred from public relations and media services in order to communicate the event, extortion, and ransom payments, and losses associated with a business interruption.
Third-Party Liability coverage.
Third-party liability covers the cost of defending against public or private litigation, settlements, judgments, or other rulings, as well as fines, fees, and settlements stemming from these lawsuits.
Cyber vs Crime Insurance
| Crime | Risk | Cyber |
| x | Data-Based Management expenses | √ |
| x | Legal liability and defense cost | √ |
| x | Regulatory investigation | √ |
| x | Loss of income due to networking interruption. | √ |
| x | Loss of information Assets due to security failure | √ |
| x | Cyber extortion. | √ |
| √ | Fraudulent fund transfer | √ |
| √ | Social Engineering ( leading to loss of funds) | x |
| √ | Employee theft | x |
| √ | Forgery | x |