Setting the Record Straight on Cyber Insurance
Clearing up the debate — and the myths
Data breaches. Notification costs. Third-party liability. Business interruption. Cyber extortion. Reputation damage.
The potential cyber and technology exposures that businesses face continue to expand — as do the potential economic losses they can cause.
It's no surprise that cyber risk now ranks among the top five concerns for companies. As recognition of the risks increases, more companies are purchasing cyber insurance to take advantage of the expanding protections those policies offer.
Why the debate?
Cyber insurance has covered losses and expenses associated with a growing range of cyber perils for almost 30 years. So why is there continued skepticism about its responsiveness? The value of cyber insurance has recently been the subject of considerable debate within the insurance industry and, in many cases, has not reflected fairly on the role of cyber insurance in reducing the economic impact of risk, often conflating cyber policies with property, casualty, and crime policies, particularly around how these policies do or do not respond to cyber claims.
No more myths
It's time to correct the record: we address the myths to show why cyber insurance is an essential component of a comprehensive cyber risk management program and a worthwhile investment for businesses.