Word of the Day: cybersecurity insurance

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Word of the Day Daily updates on the latest technology terms | November 7, 2019 cybersecurity insurance Cybersecurity insurance, also called cyber liability insurance, is a contract that an 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. In the United States, most major insurance companies offer customers cybersecurity insurance policy options. Depending on the price and type of policy, the customer can expect to be covered for extra expenditures resulting from the physical destruction or theft of digital assets. Such expenditures typically include costs associated with the following: Meeting extortion demands from a ransomware attack. Covering damages to hardware from fire or flood. Notifying customers when a security breach has occurred. Paying legal fees levied as a result of a privacy violation. Hiring computer forensics experts to recover compromised data.   Traditional insurance policies typically exclude cyber-risks and this has led to the growth of cybersecurity insurance as a separate, stand-alone type of coverage. Potential customers include any company that accepts digital payments or stores personally identifiable information about customers, including medical and financial information.   Many entry-level cybersecurity insurance policies only cover first-party losses but some insurers are beginning to offer policies that cover third-party liability losses as well. Many cybersecurity policies exclude preventable security issues caused by humans such as poor configuration management or the careless mishandling of digital assets.   Typically, pricing is based on the insured entity's annual revenue and industry. 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.   As of 2019, the cybersecurity market is still young and many companies are choosing to forego this type of insurance because of its uncertain return on investment (ROI). In the United States, the Cybersecurity and Infrastructure Security Agency, which operates under the Department of Homeland Security, is encouraging businesses to improve their cybersecurity in return for more coverage at more affordable rates. Quote of the Day "While the first line of protection should be preventative cybersecurity measures -- such as firewalls, intrusion prevention systems and business continuity and disaster recovery policies -- a cybersecurity liability policy at the ready can provide additional piece of mind." - Andrew Froehlich Related Terms cyberextortion ransomware recovery insurance claims analysis cloud insurance reinsurance subrogation pure risk Learning Center Ransomware attacks on hospitals will worsen if security doesn't improve Ransomware attacks are insidious. Experts urged healthcare CIOs to invest in proactive security measures to combat the growing threat. Ransomware attacks: How to get the upper hand Ransomware attacks are on the rise. Can organizations play like Radiohead and refuse to pay? The answer from security experts is a qualified yes.   Quiz Yourself How should I choose a cybersecurity insurance provider? https://go.techtarget.com/r/120243028/20558856 To vet potential cybersecurity insurance providers, there are a few questions every customer should ask. Learn more about the questions to ask and how to get the answers you need. The role of cybersecurity insurance in the enterprise https://go.techtarget.com/r/120243029/20558856 Cybersecurity insurance has gained more attention and acceptance from enterprises, but does it fit within an enterprise security program? Sean Martin explores a growing market. What types of cybersecurity insurance coverage are available? https://go.techtarget.com/r/120243030/20558856 Cybersecurity insurance coverage could prove invaluable to risk mitigation -- if it's chosen carefully. Find out which type of insurance plan is right for your organization. Why cyber insurance policies are so 'ridiculously cheap' https://go.techtarget.com/r/120243031/20558856 The cyber insurance market is growing rapidly and policies are incredibly inexpensive -- but experts at Black Hat 2019 had concerns about those low prices. Cyber insurance has changed incident response -- for better or worse https://go.techtarget.com/r/120243032/20558856 Cyber insurance carriers are assuming greater control over how enterprises conduct incident response, which has caused angst and frustration among some security vendors. Stay in Touch For feedback about any of our definitions or to suggest a new definition, please contact us at: editor@whatIs.com FOLLOW US About This E-Newsletter The Word of the Day is published by TechTarget, Inc., 275 Grove Street, Newton, Massachusetts, 02466 US. Click to: Unsubscribe. You are receiving this email because you are a member of TechTarget. 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