Cybersecurity insurance is also known as cyber insurance or cyber liability insurance, is an option that your business can have to reduce data loss. For a fee, a cybersecurity insurance policy will transfer some risk from your business to the insurance company.
Although all insurance types have existed for many decades, cybersecurity insurance has just emerged it is relatively new. Businesses that purchased cybersecurity insurance were among the first to adopt it. Cybersecurity policies need to be updated and adapted frequently, due to the fluctuating nature of cyber risks and attacks. Data is available to underwriters that allows them to calculate risk, set premiums and determine coverage. But, it’s not that easy to get cybersecurity insurance. This is because cybersecurity insurance is still new and the data is limited. (more…)