Why Cyber Insurance

Cyber Insurance
Protection for the Modern Business

What is Cyber Insurance?

Cyber insurance* today covers a broad range of risk mitigation services, breach response services, and compensation for losses brought about by a cyber or data breach event.


Do I need Cyber Insurance?

Organizations invest heavily in IT systems, data management and the security for those systems. What happens if those investments fail or data security is breached? 

Failure of those safeguards may cause sudden serious financial and reputational loss. Cyber insurance provides companies with the financial resources as well as expert talent to address a cyber breach, lawsuit or act of cybercrime.

What does Cyber
Insurance Cover?

Cyber Insurance is About More Than Technology

There are a range of services and coverages often found in these policies.

  • Employee Training
  • Executive Training
  • Educational Tools
  • Posters
  • Documentation – up-to-date and comprehensive, including incident response, data recovery, and business continuity plans
  • Alerts on evolving cyber threats

This coverage is not available in the $250,000 or smaller policies. It may be available from one or more of our AM Best A+ rated insurance partners.

  • Privacy counsel may determine whether a breach has occurred and the legal duties facing the organization, including notification of regulators and third parties, under state and federal law
  • Computer Forensics to determine the cause of an event
  • Notification costs including professional notification as required by law
  • Public relations and crisis management expertise and related costs 
  • Cost associated with credit monitoring services including identity theft coverage to assist the victims of a breach
  • Ransomware. When an organization incurs authorized costs associated with ransomware, they may be covered.[1]
  • Data Recovery and Restoration. Insurance may cover the organization’s costs to recover and restore data.[1]
  • Business Interruption. Loss of profits or operating expenses of an organization may be covered.[1]
  • Contingent Business Interruption. This extraordinary coverage may pay for the costs arising from an organization’s inability to secure services from a services provider upon which the company relies.[2]

[1] This coverage is available under the $250,000 Program
[2] This coverage is not available under the $250,000 Program but may be available from one of our A+ rated AM Best providers on policies of $1M or more.

  • Network liability coverage which provides for the defense costs and payment of damages arising out of a breach of the company’s system that impacts another
  • Privacy liability coverage which provides for the defense costs and payment of damages arising out of a breach of the company’s system that impacts the privacy rights of an individual
  • Regulatory Fines and penalties which support a company for the defense costs and damages in the event a regulator determines an event or its handling failed to meet the appropriate standards

Website media coverage is only available on policies of $1 million or more.

  • Social Engineering. Cyber insurance may cover the loss of funds arising from fraudulent instructions.

Does Cyber Insurance Replace Cybersecurity?

(Hint: The answer needs to start with no.)

Cyber insurance can form part of an overall risk management plan for an organization. Typically, this exposure is not covered under Commercial Property, Liability or Business Owners policies. For larger companies, Directors and Officers insurance needs to be analyzed to help avoid personal liability exposure for members of the board. Without cyber insurance, an organization has made the decision to self-insure arising from a cyber event.  Organizations must ask themselves if they have the expertise, talent and financial resources to handle a cyber event on their own, including a data breach which massively impacts the business. Join us in repeating out loud:
  • Cyber insurance does not replace the need for cybersecurity
  • Regulatory compliance is not the same as cybersecurity
  • Cyber insurance helps manage a defined range of cyber risk

Regulatory compliance may be mandated or represent best practices. Cyber risk assessment, measurement, management, and mitigation are the bedrock of a healthy organization.

AssuredOne - More than Cyber Risk Insurance

We deliver a best in class evaluation of your company’s cyber risk. The benefits of using our system include: objectivity, independence, uniform measurement tools and the ability to customize risk assessment and improvements, consistent with your ecosystem whether you are a boutique, SME, enterprise, or a Fortune 500 company. 

AssuredOne's Expertise

Libby Benet, past-president of AssuredOne, discusses effective management of cybersecurity threats in this two part episode of the Paradigm Shift Podcast.

Chairman and CEO of Assured Enterprises Inc., Stephen Soble, spoke with Information Security Media Group in London.

In Episode 68 of the Paradigm Shift Podcast, Libby Benet, past-president of AssuredOne, discusses her path from lawyer to insurance executive to cybersecurity advocate in The Truth and the Myth of Managing Cyber Security Risk.