Cyber insurance is quickly emerging as an important cyber security complement to traditional security mechanisms for small, medium, and large enterprises
In a time when data breaches are common place, and even the largest and well–resourced businesses fall victim to a hostile cyber activity, cyber insurance is a necessity. Cyber insurance functions as other traditional insurance policies guarding against digital theft and/or damage, depending on the coverage parameters of the policy. In this capacity, cyber insurance is designed to safeguard organizations from severe financial damages as a result of substantial data loss or disruption/destruction of infrastructure that can impact business operations.
But insurance can extend beyond that. When sensitive data is compromised and exposed, some policies can address legal action that can result. As evidenced from class action lawsuits that have resulted from massive data breaches (see Target, Yahoo, Marriot, among others), organizations can incur substantial financial repercussion. Some settlement amounts have reached $29 million (Yahoo) and $4.5 million (Community Health System), and while these payments –…
