Cyber Risk Insurance
Within the framework of the General Data Protection Regulation (GDPR), it is imperative for every business, small or large, to be aware of the quantity of data collected, processed, and transferred by various organizations, as well as to ensure the security of the data retained and stored by the business itself.
“Cyber Insurance” has become a critical and particularly significant part of the business strategy to address the risks arising from data management, which cannot be mitigated solely through the use of procedures and policies. With the help of “Cyber Insurance,” businesses will effectively protect their financial statements and manage the consequences of such incidents.
Data Security (Cyber Insurance)
The main (indicative) elements of “Cyber Insurance” include:
- Third-Party Civil Liability against individuals who suffered damage due to the loss of their personal data by the company to which they had provided it.
- Administrative Fines that may be imposed by competent authorities for data breach incidents.
- Cyber Extortion: Coverage for managing extortion incidents from balckmail that could harm a network or lead to the leakage of confidential information.
- Sending Money to an unknown recipient after receiving a manipulated forged document via email.
- Telecommunications Breach: Coverage for telecommunication charges due to illegal access to the company’s telephone center.
- Media Liability: Liability against third parties who suffered damage due to the publication of content by the company.
- Business Interruption: Coverage for loss of income due to the interruption of business activities caused by system breaches and the loss of confidential information.
Contract Coverages (indicative) for Cyber Risk Insurance:
- Immediate Incident Response/Management Expenses
- Expenses for negotiators in the event of threats/extortion
- Coverage of extortion expenses to prevent the leakage of personal data (in money or cryptocurrency)
- Legal advice
- Data restoration/recovery expenses
- Reputation restoration expenses for the company’s brand
- Incident notification expenses based on the GDPR regulation
- Notification omission costs
- Fine coverage in case of personal data loss
- Company’s Civil liability against third parties whose information have leaked
- Business interruption expenses due to electronic system breaches
- Expenses from electronic crime (cybercrime)
- Coverage for digital assets
- Loss of profits