
By Cynthia Lopez Olson
Cyberattacks are becoming more prevalent, and their effects are becoming more disastrous. To help mitigate the risk of financial losses, more companies are turning to cyber insurance.
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Cyber insurance, like other forms of business insurance, is a way for companies to transfer some of numerous potential liability hits associated specifically with IT infrastructure and IT activities.
These risks are normally not covered by a general liability policy, which includes coverage only for injuries and property damage. In general, cyber insurance covers things like:
•Legal fees and expenses to deal with a cybersecurity incident
•Regular security audit
•Post-attack public relations
•Breach notifications
•Credit monitoring
•Expenses involved in investigating the attack
•Bounties for cyber criminals
In short, cyber insurance covers many of the expenses that you’d typically face in the wake of cybersecurity event.