1. First-Party Coverage:
   • Data Breach Response: Costs related to notifying affected individuals, credit monitoring services, public relations efforts, and legal fees.
   • Business Interruption: Compensation for lost income and extra expenses incurred due to a cyber incident disrupting normal business operations.
   • Cyber Extortion: Expenses related to ransomware attacks, including negotiation costs and ransom payments.
   • Data Recovery and Restoration: Costs to restore and recover lost or damaged data.
   • Forensic Investigation: Costs to investigate the source and scope of a cyberattack.
2. Third-Party Coverage:
   • Privacy Liability: Legal expenses and damages if the insured is sued for failing to protect sensitive personal or corporate information.
   • Network Security Liability: Covers damages and defense costs if a third party sues for financial losses due to a security breach on the insured’s network.
   • Regulatory Fines and Penalties: Coverage for fines and penalties from regulatory bodies due to non-compliance with data protection laws.

Types of Risks Covered

• Data Breaches: Unauthorized access to sensitive information such as personal data, credit card details, and health records.
• Cyberattacks: Incidents involving malware, ransomware, phishing, denial-of-service (DoS) attacks, etc.
• Human Errors: Accidental data deletion or exposure by employees.
• Insider Threats: Malicious activities conducted by employees or other insiders.
• System Failures: Hardware or software failures leading to data loss or business interruption.

Key Features

• Risk Management Services: Many cyber insurance policies include access to risk management resources to help prevent incidents. This can include training, security assessments, and software tools.
• Incident Response Teams: Insurers often provide or recommend incident response teams that can help manage and mitigate the impact of a cyber incident.
• Regulatory Support: Assistance in navigating legal and regulatory requirements following a data breach or cyber incident.
• Reputation Management: Services to help manage the public relations aspect and preserve the company’s reputation after an incident.

Considerations When Choosing Cyber Insurance

• Coverage Limits: Ensure that the policy limits are sufficient to cover potential losses, which can be substantial in the event of a significant breach or attack.
• Exclusions and Limitations: Understand what is excluded from the policy, such as certain types of attacks or specific regulatory fines.
• Tailored Policies: Look for policies that are tailored to the specific needs and risks of your industry. Different sectors have different vulnerabilities and regulatory requirements.
• Insurer Expertise: Consider the insurer’s expertise and track record in handling cyber claims and their ability to provide timely support.