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What Does Cyber Insurance Cover?

Cybersecurity Insurance and Cyber Incidents

Cybersecurity insurance covers liability proceedings that may be initiated against you resulting from cyber events (damage caused to third parties). This includes investigation and defence costs, civil damages, and compensation payments to affected parties.

A cyber incident is any actual or suspected unauthorised access to an IT system, cyberattack and breach of privacy. The vast majority of financial losses represent direct losses to the company and include fund theft, data theft and/or damage to digital assets and IT devices.

Cyber insurance covers losses related to damage or loss of information from IT systems and networks. It covers your direct loss and financial loss to your business resulting from a cyber incident.

Cyber insurance also generally includes significant assistance and management of cyber incidents before and after they occur. To protect you from such losses, cyber liability insurance policies usually cover the following elements of cyber events that pose a risk to the business. Find out what cyber insurance covers below.

How Cyber Insurance Helps You – Common Coverages

Pre-incident support

Cyber insurance can help you manage your cyber risks and prevent cyber incidents. Insurers can offer you cybersecurity expertise and threat intelligence services, conduct IT vulnerability assessments, cybersecurity training for staff and help with password management.

Post-incident support

Post-incident support (also Cyber Forensic Support) is usually included in a standard offer by insurance companies. In the event of an IT failure or cyber-attack, this will give your company support from cyber experts recommended by your insurer in the period following the cyber incident. These experts can assess your systems, identify the source of any breach and suggest preventive measures for the future. Furthermore, this support can often include advice on your legal and regulatory requirements and obligations, as well as what steps you should take to notify your customers of the events that have occurred.

Cyber extortion – Ransomware

Cyber extortion coverage protects your business in the event of ransomware and other malicious attacks. These attacks attempt to take control of and deny access to your operational or personal data until a ransom is paid. This coverage will usually reimburse you for the ransom amount demanded by the attacker. It may also cover any expert consultant fees for overseeing the negotiations and transfer of funds to resolve ransom requests. Paying an attacker to unlock your systems should not be your first action. Before deciding to pursue this course of action, you should report the incident to the police and communicate with your insurer to determine the terms of cyber extortion. After dealing with a ransomware attack, your company should try to fix system weaknesses and improve security.


This is a part of the coverage often limited by a smaller sum insured. It is directly connected with the financial loss of the company. This section of the policy can cover the loss of funds and money transfers, manipulations and forged bills (invoices), as well as fraud and manipulation of employees.

Costs due to security and privacy breaches

This is one of the most important and critical sections to look for in a cyber insurance policy. It protects your business from the costs arising from dealing with a security breach. For instance, it will cover the costs of notifying clients about a cyber attack and their exposure to it, the costs of hiring a call centre to answer clients’ inquiries, the costs of public relations advice, IT forensic costs, possible legal penalties, court fees, etc. It will also protect your business from lawsuits in case of your liability for a privacy breach and related legal costs. This coverage provides not only for payments to claimants but also for legal and regulatory defence costs arising from a privacy breach. This is particularly important for businesses that store and handle their customers’ personal data.

Damage to digital assets and equipment

It protects your business from damage to digital assets, such as your website or photos. It protects against loss, damage or alteration of data, as well as against misuse of computer programs and systems. Data recovery costs are particularly relevant for companies that rely on online business models or automated production systems where an incident could cause significant damage to business operations.

Loss due to business interruption

This is an important aspect of most cyber insurance policies. If an IT failure or cyberattack disrupts your business operations, insurers will cover your loss of income during the disruption period, including when it is caused by increased business costs following the incident. This can be a critical safety net as you try to get back to your regular work flow.

Media responsibility

A cybersecurity insurance policy can provide coverage for your activity in digital media if someone files a lawsuit against your company for intellectual property infringement, defamation, etc. It is especially relevant for companies that create digital content or have content on their website, which can lead to liability.

Need quality advice regarding Cybersecurity insurance?

You can leave us to deal with contracting a policy and choosing the best insurance coverage for you and your company. The team of professionals of the insurance broker Eurosolutions Ltd. will facilitate the entire process and provide you with the right advice and the most competitive insurance offer tailored to your needs.