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.
Because the cyber-insurance market in many countries is relatively small compared to other insurance products, its overall impact on emerging cyber threats is difficult to quantify. As the impact to people and businesses from cyber threats is also relatively broad when compared to the scope of protection provided by insurance products, insurance companies continue to develop their services.
Benefits of Cyber Insurance
CYBASTION goes above and beyond by offering customers another level of security. In addition to directly improving security, CYBASTION delivers cyber-insurance to customers which is enormously beneficial in the event of a large-scale security breach. Insurance provides a smooth funding mechanism for recovery from major losses helping businesses to return to normal and reducing the need for government assistance.
Insurance allows cyber-security risks to be distributed fairly with cost of premiums commensurate with the size of expected loss from such risks. This avoids potentially dangerous concentrations of risk while also preventing free riding. CYBASTION partners not only with insurance companies but also with reinsurance companies with the goal of providing complete peace of mind to our customers.