Word of the Day: cybersecurity insurance

Word of the Day Daily updates on the latest technology terms |April 27, 2017

cybersecurity insurance Cybersecurity insurance is a contract that an individual or entity can purchase to help reduce the financial risks associated with doing business online. In exchange for a monthly or quarterly fee, the insurance policy transfers some of the risk to the insurer. Many companies purchase cybersecurity insurance policies to cover extra expenditures that could result from the physical destruction or theft of digital assets. Such expenditures typically include the cost of notifying customers that a security event has incurred, as well as the cost of regulatory fines. To qualify for coverage, the individual or entity typically has to submit to a security audit by the insurance company or provide documentation with the assistance of an approved assessment tool, such as that offered by the Federal Financial Institutions Examination Council.   Many cybersecurity insurance policies only cover first-party losses to a company. Some policies, however, may also cover third-party liability losses. Depending upon the price of the policy, coverage may include first and/or third-party liability for cyberextortion, costs associated with strengthening data security, damages due to corrupt or missing data, damages due to inoperable hardware or software and monetary loss from theft or lost business.   Because coverage is not often for the total amount of damages, many companies choose to buy additional insurance to cover amounts beyond which a cybersecurity policy covers. Quote of the Day "Cyberinsurance is going to continue to grow as a cottage industry until there is some standardization of the product and the policies. It is going to take some form of government backing or incentive for that to occur." - John Wheeler   Trending Terms cyberextortion insider threat FFIEC Cybersecurity Assessment Tool risk assessment attack surface   Learning Center NSA spyware found infecting tens of thousands worldwide Tens of thousands of systems around the world were found to be infected with NSA spyware after a tool was developed to scan for the malware. Why passing on cyber-risk insurance could be a big mistake When it comes to cyber-risk insurance, manufacturers may think they don't need coverage against data breaches. Here's why they might be wrong. Cyberinsurance policies: Getting coverage and avoiding limitations Cyberinsurance policies can be complex affairs thanks to some undefined areas. Here's what enterprises should know about coverage and limitations. Is cyberinsurance worth the risk? As insurance providers rush to sell cyberinsurance to companies of all sizes, many enterprises still can't find adequate policies based on the lack of standardization. Cybersecurity insurance: Choosing a cyber insurance policy What is cybersecurity insurance, and how can enterprises choose a cyber insurance policy? Get expert advice. Writing for Business A botnet is a group of computers organized to distribute spam or malware -- _________ the owners are typically unaware of the fact. a. though b. although c. even though Answer       Stay In Touch For feedback about any of our definitions or to suggest a new definition, please contact me at: mrouse@techtarget.com   Visit the Word of the Day Archives and catch up on what you've missed!   FOLLOW US About This E-Newsletter This e-newsletter is published by the TechTarget network. To unsubscribe from Whatis.com, click here. Please note, this will not affect any other subscriptions you have signed up for. TechTarget, Whatis, 275 Grove Street, Newton, MA 02466. Contact: webmaster@techtarget.com Copyright 2016 TechTarget. All rights reserved.