Cyber and privacy insurance policies are designed to protect a company from the activities of hackers and other individuals or groups who may gain access to company-stored personal identifying information (PII).

KEY TAKEAWAYS

• Cyber and privacy insurance policies protect companies from hackers and other individuals or groups who may gain access to company-stored personal identifying information.
• A cyber and privacy insurance coverage policy may protect companies from losses that result from data breaches or confidential data loss.
• Purchasing cyber and privacy insurance coverage can help a business recover from the financial and regulatory burdens that security breaches can create.

Understanding Cyber and Privacy Insurance

The use of computers and the Internet has become an integral component of business operations over recent decades. Many businesses rely on the Internet to reach customers and to deliver services to clients.

Frequently, this activity requires the transfer of confidential and private information from the client to the company and vice versa. Information may include credit card details, Social Security numbers, health records, and contact information.

Businesses are at risk of attack if they collect and store purchase information, maintain records of Social Security numbers, or have credentialing or educational data. This type of information is most prone to identity theft attacks.

Cyber and Privacy Insurance Lessens the Blow to Companies

No matter how much care organizations put in when they set up their cybersecurity protocols, unauthorized use of information remains a potential problem. The application of hacking using social engineering, such as phishing email attacks, or other methods exploits human tendencies and gain access to sensitive information.

What Is Cyber and Privacy Insurance?

A cyber and privacy insurance coverage policy may provide companies with protection from losses resulting from a data breach or the loss of electronically stored confidential information.

Cyber and privacy insurance policies are designed to protect a company from the activities of hackers and other individuals or groups who may gain access to company-stored personal identifying information (PII).

KEY TAKEAWAYS

• Cyber and privacy insurance policies protect companies from hackers and other individuals or groups who may gain access to company-stored personal identifying information.
• A cyber and privacy insurance coverage policy may protect companies from losses that result from data breaches or confidential data loss.
• Purchasing cyber and privacy insurance coverage can help a business recover from the financial and regulatory burdens that security breaches can create.

Understanding Cyber and Privacy Insurance

The use of computers and the Internet has become an integral component of business operations over recent decades. Many businesses rely on the Internet to reach customers and to deliver services to clients.

Frequently, this activity requires the transfer of confidential and private information from the client to the company and vice versa. Information may include credit card details, Social Security numbers, health records, and contact information.

Businesses are at risk of attack if they collect and store purchase information, maintain records of Social Security numbers, or have credentialing or educational data. This type of information is most prone to identity theft attacks.

Cyber and Privacy Insurance Lessens the Blow to Companies

No matter how much care organizations put in when they set up their cybersecurity protocols, unauthorized use of information remains a potential problem. The application of hacking using social engineering, such as phishing email attacks, or other methods exploits human tendencies and gain access to sensitive information.