Cyber Insurance is an insurance product used to protect businesses and individual users from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Risks of this nature are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products.
Coverage provided by cyber-insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions, failure to safeguard data, or defamation; and other benefits including regular security-audit, post-incident public relations and investigative expenses, and criminal reward funds.
If any of these definitions describes elements of your business you need Cyber Insurance cover – holding personal customer data such as names, addresses, and banking details, is reliant on computer systems for the operation of the business, is subject to a payment card industry merchant services agreement.
Cyber Insurance covers the impacts and costs of not being able to trade if data is stolen or systems taken down by outside agencies claiming ransom payments. It will also cover your costs in defending any claims for misuse of data, especially with the changes introduced with GDPR in June 2018.