5 Things you need to know about Cybersecurity Insurance
1. It’s a risk-management strategy. Cybersecurity insurance transfers some of the financial risk of a security breach to the insurer. First-party insurance typically covers damage to digital assets, business interruptions and, sometimes, reputational harm.
Third-party insurance covers liability and the costs of forensic investigations, customer notification, credit monitoring, public relations, legal defense, compensation and regulatory fines. Cyberthreats are so broad that the cost of protecting against them all would be prohibitive. The best approach is to identify and secure the company’s digital crown jewels, then quantify and insure the remaining risk, says Daljitt Barn, director of cybersecurity at PricewaterhouseCoopers.
