Digitalization offers companies many advantages – but it also carries risks. Cyberattacks such as hacking, data theft, and ransomware attacks are on the rise and can cause immense damage. This is precisely where cyber insurance comes in. But what exactly does it cover, and why is it so important?
What is cyber insurance?
Cyber insurance is a special policy that protects companies from financial losses caused by cyberattacks. It not only helps cover costs but also facilitates the rapid recovery of IT systems.
What does cyber insurance cover?
Depending on the provider and policy, the coverage includes the following areas:
- Data loss: Costs for recovering lost or stolen data.
- Business interruption: Protection against revenue losses due to IT outages.
- Liability for data breaches: If sensitive customer data is stolen, the insurance company often also covers potential claims for damages.
- IT forensics: Support from experts to identify the cause of the attack.
- Crisis management: Costs for PR measures to minimize reputational damage.
Example: A stroke of luck amidst misfortune.
Ms. Meier's small marketing agency recently fell victim to a ransomware attack. Hackers encrypted all customer data and demanded a ransom of €50,000. Without access to her data, the entire operation came to a standstill. Fortunately, Ms. Meier had cyber insurance. Within a few hours, the insurance company provided a team of IT forensic experts who secured the systems and analyzed the attack. In addition, the insurance company covered the costs of lost revenue during the business interruption and data recovery. Thanks to the swift intervention, the agency was able to resume operations within a few days – and Ms. Meier didn't have to invest any of her own money.
Who benefits from cyber insurance?
In short: anyone who uses digital data or IT systems. Companies that process sensitive customer data or are heavily reliant on IT systems should especially consider cyber insurance.
Why is it indispensable?
Cyberattacks don't just affect large corporations, but increasingly also small and medium-sized enterprises (SMEs). A single attack can cause serious financial and operational damage. With cyber insurance, you protect your company from the consequences and can react more quickly.
Tip: Independent advice from Risk-BOT.
With Risk-BOT, you can easily and independently find out which cyber insurance policy suits your company. Check providers, rates, and potential savings – all without intermediaries.