Cyber insurance, also known as cyber liability insurance or cyber risk insurance, is a specialized type of insurance that protects businesses from financial losses and liabilities arising from cyberattacks, data breaches, and other technology-related risks. In an increasingly digital world, where businesses rely heavily on data and interconnected systems, cyber threats pose a significant and growing risk.
TLDR: In today’s digital world, cyber threats pose serious risks to all businesses, especially SMEs. Cyber insurance is essential to protect your data, operations, and reputation, helping you recover quickly from attacks.
Purpose: The primary purpose of cyber insurance is to help businesses recover from the financial impact of cyber incidents. A data breach or cyberattack can lead to massive costs, including investigation expenses, legal fees, regulatory fines, notification costs, and reputational damage. Cyber insurance provides a critical financial safety net, allowing businesses to manage and mitigate these complex and evolving risks.
Coverage: Cyber insurance policies are designed to cover a wide range of costs associated with cyber incidents, which can include:
Use-Case: If an e-commerce business is hit by a ransomware attack. Hackers lock their customer data and take the website offline, stopping all sales. The attackers demand a large ransom in cryptocurrency. Without cyber insurance, the business would have to handle negotiations, possibly pay the ransom, rebuild their system, and work to regain customer trust — all while losing revenue. With cyber insurance, the policy covers the cost of experts, investigations, ransom payment, and lost income, helping the business recover faster and reduce long-term damage.
Worried about cyber threats? Our expert advisors are here to help you find the right cyber insurance plan. We work with 18 trusted insurance partners in Singapore to provide coverage that protects your business from digital risks.
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