Understanding Cyber Insurance

What cyber insurance covers, how policies are structured, and why getting it right matters when an incident occurs.

Get Cyber Insurance – Quick, Simple, and Hassle-Free

Request a Cyber Insurance solution today.

What Is Cyber Insurance?

Cyber insurance is designed to protect organisations from the financial and operational impacts of cyber incidents, including data breaches, system outages, ransomware events and cyber extortion. 

Cyber insurance policies typically comprise two main components: First Party Losses and Third Party Losses. Both require careful review to ensure policy limits and coverage align with the organisation’s actual risk exposure. 

What it covers, how it works, and why it matters.

Cyber Insurance

Each of these covers need to be reviewed in depth to ensure Policy Limits are adequate enough should an event occur. Policy Limits can be drained all too quickly by Professional Costs that have not been accurately calculated for the specific business. 

First Party Losses

First party losses relate to the direct costs incurred by the insured organisation following a cyber incident. 

These may include: 

  • Incident response and forensic investigation costs 
  • Business interruption and loss of income 
  • Data restoration and system recovery 
  • Cyber extortion and ransomware response 

Professional and response costs can accumulate quickly, often exhausting policy limits if they are not accurately assessed at placement. 

Third Party Losses

Third party losses relate to claims brought against the organisation by external parties. 

These may include: 

  • Privacy and data breach liability 
  • Network security liability 
  • Media and intellectual property liability 

These exposures vary significantly depending on the nature of the organisation, the data it holds and the services it provides. 

Are the gaps in your environment filled?

Why Policy Limits Matter

Cyber insurance limits can be eroded rapidly by professional costs alone if they are not properly calculated. We review first and third party exposures in detail to ensure policy limits are appropriate for the organisation’s specific risk profile — not just based on revenue or headcount. 

At Infosure, we work through your existing Cyber Security protocols and IT Infrastructure in the first instance, to establish an understanding of what is required to obtain the level of Cyber Insurance Cover required for your risk. We can also work with you in tandem with our in-house IT Solutions and Cyber Security professionals if required, to ensure any gaps in the current environment are filled. 

Request a cyber insurance solution

Receive a tailored cyber insurance solution today.