As its name suggests, data breach insurance provides your organization with a financial safety net following a data breach. In many cases, this may mean that you can access funds to help pay for the following expenses or damages:
Response costs—This coverage can help your organization pay to investigate a data breach, notify affected parties and pay noncompliance fines.
Additional help—In the wake of a data breach, your insurance may help pay for assistance, such as fraud and credit monitoring services for affected parties and a crisis management team or public relations firm for your business.
Restoring systems—If an incident involves damaged or compromised equipment, devices or systems, data breach insurance may help you recoup losses.
Cyberextortion payments—This coverage can compensate you if a cyber criminal accesses sensitive data and extorts you for payment, such as via a ransomware attack.
Business interruption costs—If a data breach forces your organization to pause or alter its normal operations temporarily, this coverage can provide financial assistance for lost income or equipment rental.