A Guide to Cyber Insurance Policy for Malware Attacks 

Cyber insurance policies have been around for some time but they have evolved due to the rapidly changing nature of cyber attacks. As the demand for such policies increases, their costs escalate. Coverage in the event of a cyber attack is an essential element of doing business today. Even small businesses have to deal with cyber attacks and cyber-related events.

They must contain the crisis and the damage to their reputation, respond to customers, cover legal costs, and more. Here are some factors to keep in mind when considering taking out cyber insurance.

First-party and third-party coverage

Cyber insurance companies generally provide two main types of coverage although there are many variables and exclusions. First party coverage reimburses the insured party for costs that directly affect the business. A business may have to hire crisis management consultants and recover losses due to website downtime etc. The second component of coverage is third-party insurance. This reimburses the insured party for costs incurred by clients due to data breaches, malware infections, etc.

It’s a general misconception that they don’t but today Macs are targeted just as much as Windows PCs. There are many different types of viruses and malware that can infect your Mac. The tips here will help you to make sure your Mac is safe and secure.

Types of cyber attacks

Your business is vulnerable to many different types of attacks.

Data breaches

A data breach can happen when malware infiltrates your network through various means such as email attachments or links to malicious websites. Malware refers to any software that can infiltrate and harm a computer system. It can come in various forms such as viruses, Trojans, spyware, worms, and adware.

Ransomware attacks

Ransomware attacks are one of the leading causes of cyber insurance claims. They result in loss of income, extortion demands, and restoration costs. Does cyber insurance cover ransomware attacks? Not all policies will cover them. Check whether they do because not having this coverage can ruin your business.

DDOS attacks

DDOS attacks can result in loss of income and financial damages to clients who can’t access data or utilize your services.

Transmission of a virus or malware

If you transmit a virus or malware to a client or vendor you may be sued and have to pay for the damages they sustain.

Recent trends that are increasing cyber risks

Cyber and crime insurance is becoming increasingly necessary for small and mid-sized businesses. They often find it more difficult to pay for sufficient cyber security coverage than large businesses and this is making cyber criminals more likely to target them.

Malware is becoming increasingly sophisticated resulting in a greater number of data breaches.

Regulatory agencies are increasing cyber security oversight. Businesses that fail to comply may face investigations and high penalties.

What do cyber insurance policies have to offer?

Many different types of cyber insurance policies are available. They may cover everything from financial losses to brand reputation damage. Some risks they cover are:

• Privacy risks
• Operational risks
• Security risks
• Service risks

Cyber insurance policies usually offer coverage for malware attacks. They provide financial support and technical assistance during and post-attack. For example, they will pay for businesses to investigate, remediate, and restore their data and systems. They will also cover business interruption losses and the costs of legal services.

What does cyber security insurance cost?

You may ask “How much cyber insurance do I need”? It’s important to assess your needs and choose a policy that will help you recover from a cyber attack while still keeping your premiums affordable. Cyber liability insurance costs can vary considerably. You can pay from about $500 per year up to over $50,000 per year.

If your business uses a number of servers and stores plenty of customer data, you will need more extensive coverage and the costs will be higher. The industry your business is in will also affect costs. If you have an online business you will face more cyber threats than a brick-and-mortar one. If your business stores sensitive data, such as when you’re in healthcare, you will usually pay more.

When a data breach occurs you have to notify victims, monitor restoration, and may even have to hire crisis management services. A data breach may result in a regulatory investigation and penalties. Data breach insurance gives you the finances you need to recover from such a breach.

Can you reduce your cyber insurance premiums?

Investing in anti-virus software and strong cyber defenses can reduce your insurability and potentially reduce your premiums. Cybersecurity insurance requirements may include an encryption requirement. It may exclude coverage for claims arising from data breaches affecting unencrypted data. Your claims history will also affect your premiums and reducing your claims can prevent your premiums from escalating.

Conclusion

Cyberattacks are so rampant that there’s one happening every 39 seconds. This is a big cause for the organization and governments around the world. Cyber insurance policies are designed to mitigate the financial losses and liability that come from cyber attacks. You need to assess the cyber threats that could do the most harm to your business and choose a policy that suits your risk profile and your budget.