Cyber Insurance for Businesses and Individuals Explained

Cyber insurance is a type of insurance that protects businesses and individuals from financial losses due to cyber attacks. It's a must-have for anyone who uses technology, as cyber threats are becoming more common and sophisticated.

Cyber insurance can cover a range of risks, including data breaches, ransomware attacks, and cyber extortion. This means that if your business or personal data is compromised, you'll be able to recover financially.

In the event of a cyber attack, cyber insurance can help cover the costs of notifying affected parties, providing credit monitoring, and even paying for a public relations expert to help manage the crisis.

Cyber insurance is a type of insurance policy that protects businesses and individuals from financial losses due to cyber attacks and data breaches.

It can cover various costs associated with a cyber attack, including the cost of notifying affected customers, providing credit monitoring, and paying for identity theft protection.

Cyber insurance policies can be customized to fit the specific needs of a business or individual, with some policies covering specific types of cyber threats, such as ransomware or phishing attacks.

Businesses can expect to pay a premium for cyber insurance, which can range from a few hundred to several thousand dollars per year.

Cyber insurance can also provide liability coverage in case a business is sued for a data breach, with some policies covering up to $10 million in liability.

The cost of a cyber attack can be devastating, with some businesses facing costs of up to $1 million or more in the aftermath of a breach.

Cyber insurance can help businesses and individuals prepare for and respond to a cyber attack, with some policies including services such as incident response and crisis management.

By having cyber insurance, businesses and individuals can have peace of mind knowing that they are protected in case of a cyber attack.

Choosing the right cyber insurance policy can be a challenge, but understanding the basics can make it easier. AIG has been helping clients navigate cyber risks for 25 years, offering tailored policies that include Commercial Crime and Workers Compensation coverage.

To qualify for cyber insurance, an enterprise typically needs to allow an insurer to carry out a security audit or provide relevant documentation courtesy of an approved assessment tool. This helps guide the type of insurance policy the provider can offer and the cost of any premiums.

The type of policy you choose will depend on your business's risk profile and coverage needs. Assessing your coverage needs is the first step, examining current security programs and determining other areas that need insurance, such as data backup or third-party risks.

Some policies may have exclusions that don't allow coverage for insider threats or nation-state attacks, so it's essential to know what your insurance covers. Be cautious around policy limits and exceptions when it comes to major risks.

Choosing the right provider is crucial, as companies with a good reputation for handling insurance claims and customer feedback are particularly valuable during a crisis. Selecting the right provider can help avoid a lot of time off and get your business back on the road to recovery quickly.

Here are some key things to consider when choosing a cyber insurance policy:

By understanding these factors and doing your research, you can choose the right cyber insurance policy for your business and protect yourself from the risks of cyber attacks.

Cyber insurance providers can help organizations qualify for insurance by verifying they have the necessary processes and technologies in place.

To qualify for cyber insurance, organizations must first assess their cyber readiness with a respected professional services organization. This involves a security audit before providing cyber insurance.

Organizations can implement technology that protects their elements against cyber threats, such as anti-malware solutions to protect against malicious software.

By following these steps, organizations can strengthen their cyber defenses and manage their cyber risk through the combination of cyber insurance, secure devices, domain expertise, and technology.

AIG is one of the largest cyber insurance providers in the world, with a global presence and a wide range of insurance products.

AIG's cyber insurance policies are designed to protect businesses from the financial losses resulting from cyber attacks, data breaches, and other cyber-related risks.

AIG's policies cover a range of costs associated with cyber attacks, including business interruption, data recovery, and crisis management expenses.

AIG's global network of experts and partners enables it to provide 24/7 support and assistance to policyholders in the event of a cyber attack.

AIG's cyber insurance policies are customizable to meet the specific needs of each business, including the type and level of coverage required.

AIG's reputation for expertise and reliability has made it a trusted partner for many businesses looking to protect themselves against cyber threats.

AIG Specialty Risk Protector is a comprehensive solution that provides one seamless policy for cyber liability and specialty professional liability coverages. This updated form is designed to simplify the process of managing complex risks.

AIG's Specialty Risk Protector is a game-changer for businesses that want to protect themselves against cyber threats and professional liability risks. With this policy, you can have peace of mind knowing that you're covered in case of a cyber attack or professional negligence.

The policy is designed to be flexible, allowing you to tailor it to your specific needs. Whether you're a small business or a large corporation, AIG's Specialty Risk Protector can provide the coverage you need to protect your assets and reputation.

Here are some key features of AIG's Specialty Risk Protector:

By choosing AIG's Specialty Risk Protector, you can benefit from their team's in-depth knowledge of common industry risks and insurance needs. This expertise can help you navigate the complex world of cyber insurance and ensure that you're properly protected.

Our claims experts are a force to be reckoned with, boasting an average of 20+ years of experience, with 90% of them being former lawyers. This expertise is invaluable in navigating the complex world of cyber insurance claims.

A successful phishing attack and a client's failure to follow the principle of least privilege led to a ransomware infection, with the threat actor demanding $2M in bitcoin for a decryption key and to keep sensitive information under wraps.

AIG's claims experts and partners quickly determined that infected files could be restored from system backups, rendering a ransom payment unnecessary.

AIG's cyber claims team and relationships with specialized legal and forensic firms provide end-to-end support for clients' response to cyber events, facilitating a prompt return to full operations.

CyberEdge covers not only legal and forensic expenses but also the cost of notification efforts, call center services, and credit monitoring.

Cyber insurance policies typically include first-party coverage for losses incurred through data destruction, hacking, data extortion, and data theft. This coverage helps businesses recover from cyber incidents.

Customer notifications are a crucial part of cyber insurance, as enterprises are usually required to notify their customers of a data breach. Cyber insurance often helps businesses cover the cost of this process.

Cyber insurance also covers recovering personal identities of affected customers, data breaches, data recovery, system damage repair, ransom demands, attack remediation, and liability for losses incurred by business partners with access to business data.

Here are some key types of cyber insurance coverage:

Cyber insurance policies can also provide comprehensive coverage for various digital threats, including ransomware attacks, phishing scams, data breaches, distributed denial of service attacks, insider threats, and social engineering attacks.

Cyber insurance should not be considered a substitute for effective cyber defense. Cyber insurance should only be used to mitigate the damage caused by a potential cyberattack, not to replace robust cyber risk management.

In fact, failing to invest in appropriate cybersecurity solutions can result in enterprises either failing to qualify for cyber insurance or paying more for it. This is because cyber insurance suppliers analyze an organization's cybersecurity posture in the process of issuing a policy.

A solid security posture enables an enterprise to obtain better coverage, while a poor security posture makes it more difficult for an insurer to understand their approach, resulting in ineffective insurance purchases.

Here are some common cyber threats that are typically covered by cyber insurance policies:

In order to qualify for cyber insurance, organizations need to take decisive action to strengthen their cyber defenses and manage their cyber risk through a combination of cyber insurance, secure devices, domain expertise, and technology. This involves assessing cyber readiness, implementing technology that protects against threats, and then obtaining cyber insurance.

AIG offers a range of cyber insurance coverages to help protect businesses from digital threats. Their CyberEdge risk management approach provides comprehensive coverage for physical and non-physical losses resulting from a cyber event.

A standalone CyberEdge policy or an endorsed policy on select Financial Lines, Property, and Casualty policies are available options. To find the best fit for your needs, you can refer to AIG's cyber coverage guide (PDF).

The Speciality Risk Protector form from AIG provides a seamless policy for cyber liability and specialty professional liability coverages. This updated form offers a convenient solution for businesses seeking comprehensive protection.

Ransomware attacks are a significant threat to businesses, and AIG's cyber insurance can help reduce the impact by paying ransoms, attorney fees, and costs for data recovery. In fact, ransomware now constitutes 75% of all cyber insurance claims.

Phishing scams, data breaches, distributed denial of service attacks, insider threats, and social engineering attacks are all common cyber threats that can be addressed by AIG's cyber insurance policies. These policies can provide financial protection against cyber-related incidents, including losses due to fraudulent payments, costs associated with forensic investigation, and liabilities in litigation.

Here are some common cyber threats covered by AIG's cyber insurance policies:

Cyber insurance is not just about covering losses, it's also about providing valuable insights to help you improve your cybersecurity posture. AIG's CyberEdge risk management approach provides coverage for physical and non-physical losses resulting from a cyber event.

Cyber insurance suppliers analyze an organization's cybersecurity posture in the process of issuing a policy. Having a solid security posture enables an enterprise to obtain better coverage.

A thorough risk assessment is essential to identify the most significant cyber threats your business faces and the potential impact of those threats. This assessment can help you determine the appropriate level of coverage and prioritize your cybersecurity efforts.

AIG's Cyber Risk Advisors provide expert guidance to remediate loss control gaps using best practices. They also help clients continuously verify cyber risk maturity, prioritize improvements, and improve cyber security investments with CyberMatics.

Cyber insurance can cover costs associated with data breaches, including forensic investigation, customer notifications, or liabilities in litigation. Assuming the average breach cost falls into several million dollars, having a broad threat coverage plan can save businesses.

CyberMatics is a patented, award-winning data and technology-driven process that helps clients verify cyber risk maturity, prioritize improvements, and improve cyber security investments. It also provides 24/7 cyber hotline access in the event of a known or suspected incident.

Here are some key benefits of CyberMatics:

By leveraging AIG's expertise and CyberMatics, clients can resolve critical vulnerabilities in their systems before a claim can occur, and benefit from more tailored policy terms at renewal.