The cost of damages from a data breach goes beyond repairing your databases, buying new security tools, or replacing lost hardware. While this is expensive, the company may have to deal with legal and PR issues and may need to check if there are remnants of the malware in their environment. A good cyber insurance policy compensates you for all of your recovery costs, not just the cost of the initial attack.
Some policies include access to specialized crisis management services that will help you recover entirely in the event of a successful cyberattack. This emerging type of insurance can change monthly based on industry dynamics. Unlike other plans, cybersecurity has limited data for the underwriters to formulate risk models and determine everything from coverage to premiums and rates. That’s why it is good to read through the policies to understand all these features before subscribing to them.
Cyber Insurance Crisis Management Services
Indeed, the right insurance coverage should help you manage the crisis resulting from data loss, leaks, or damage to the database. Here are a few crisis management services the ideal insurance policy should cover.
Most companies have to deal with legal challenges after a data leak, loss, or theft. These legal challenges may come from various quarters. The industry regulator is most likely, for example, the central bank for banking or the gambling watchdog for online casinos. If these watchdogs discover the company did not follow proper procedures when storing or using data, they may sue or fine the company.
Second, the affected clients may also sue for damages from data loss or leakage. The extent of these challenges depends on the kind and size of the data leak. Third, the company may be sued by trade partners and suppliers who rely on or contribute to the data when doing business together. A good cover should enable you to get an experienced lawyer to protect company interests and lower the projected penalty or compensation to victims.
Another issue the company will have to deal with after a loss is reputational damage. Individuals and companies may not want to do business with a company likely to give out their personal information or company trade secrets. The affected company will have to spend cash to assure its customers and trade partners such a loss will not occur in the future.
Public relations include a set of communications meant to give the company a favorable perception in the minds of its partners and customers. It is vital to counter the negative publicity that comes with data loss, leakage, or manipulation.
Unfortunately, public relations initiatives do not come cheap. It will include holding events, buying space in print, online, and mainstream media, and reaching out to affected clients. A good policy should cover these costs and enable the company to restore user confidence without incurring more expenses.
Forensics is investigating and recovering all the material in any digital service related to cybercrime. The company must know how the systems were breached, what devices and digital tools were used, what data was accessed, and how the attacker could have used the data. In the case of a criminal investigation, digital forensics helps analyze and document the digital evidence to be presented in a court of law. This information helps them remove any malware left in the database and strengthen their systems to prevent future attacks.
A good insurance policy compensates you for investigating and discovering the exploited loopholes—which can be a substantial cost. Therefore, compensation would go a long way toward ensuring the company does not suffer financial upset from the investigation.
Having a good cyber policy will give you access to all sorts of crisis management services to make completely recovering from a cyberattack possible and less painful. Learn more by watching the full webinar on the issue from cybersecurity experts at Aldridge and FifthWall Solutions.