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May 7, 2017

What is cybersecurity insurance

Cybersecurity insurance is a contract that an individual or entity can purchase to help reduce the financial risks associated with doing business online.

To qualify for coverage, the individual or entity typically has to submit to a security audit by the insurance company or provide documentation with the assistance of an approved assessment tool, such as that offered by the Federal Financial Institutions Examination Council.

Depending upon the price of the policy, coverage may include first and/or third-party liability for cyberextortion, costs associated with strengthening data security, damages due to corrupt or missing data, damages due to inoperable hardware or software and monetary loss from theft or lost business.