Cyber insurance is becoming a popular means of company data protection, as data breaches increase in quantity and severity. The costs of a typical breach include replacing laptops, repairing databases, and strengthening internal controls. It also includes the loss of the company’s customer base as well as reputational losses. Traditional company insurance is no longer sufficient to cover such losses. Cyber insurance is frequently sought to compensate for potential data breaches.
According to the 2019 Travelers Risk Index, only 51% of companies are purchasing cyber insurance. This number is expected to rise substantially in 2020 as cyber-crimes increase. Companies are advised to explore cyber insurance coverage options. Many options exist such as First-Party Coverage, Worldwide Coverage, or Business Interruption Coverage. The best coverage for a company will depend on the nature of its business and the specific risks it faces.