Cyber insurance policies offer a range of coverage options to protect against various risks. While policies vary by provider, common coverage components include:

First-Party Coverage: This covers the direct costs incurred by the organization in the event of a cyberattack. First-party coverage typically includes:

• Data breach notification costs
• Forensic investigation fees
• Costs for data recovery and restoration
• Business interruption and lost revenue
• Crisis management and public relations services

Third-Party Coverage: This provides protection against claims made by third parties (e.g., customers, vendors, or partners) in the aftermath of a cyber event. Third-party coverage typically includes:

• Legal fees and settlements from lawsuits
• Regulatory fines and penalties
• Customer notification and credit monitoring costs
• Defense costs for claims related to privacy violations, intellectual property breaches, or data security incidents

Ransomware Coverage: This specialized coverage applies in the event of a ransomware attack, helping cover the costs associated with ransom payments (though some policies may not cover ransom payments directly) and the recovery efforts.

Network Security Liability: This protects against liabilities arising from failures in network security, such as attacks exploiting vulnerabilities, system failures, or denial-of-service (DoS) attacks that affect the organization’s operations or its clients.

Social Engineering Coverage: This coverage helps organizations recover losses from incidents involving social engineering attacks, such as phishing schemes or fraudulent wire transfers, where attackers deceive employees into transferring funds or sensitive data.

It is essential for organizations to review the terms and conditions of their cyber insurance policy carefully, as exclusions and limitations may apply to certain types of coverage.