Cyber Insurance in Hamilton

Oracle RMS FAQ:

What is bricking in cyber insurance?

“Bricking” in cyber insurance refers to a situation where a cyberattack renders a device or system completely non-functional, essentially turning it into a “brick.” This can happen when unauthorized access is gained, and the attacker manipulates the system to disrupt its normal operations. 

This type of incident can have serious consequences for businesses, impacting operations and potentially causing financial losses. For example, in an industrial context, a manufacturing machine that is bricked could halt production, leading to financial losses due to downtime and potentially impacting supply chains.

Coverage for bricking incidents in cyber insurance might fall under business interruption coverage, addressing financial losses due to operational disruptions, and could also include aspects of data recovery, systems restoration, and potential legal liabilities resulting from the incident.

What are the different types of cyber insurance?

Cyber insurance comes in various forms to address the wide range of risks and challenges that businesses face in the digital landscape. Here are some common types of cyber insurance:

1. Data Breach Insurance
2. First-Party Coverage
3. Third-Party Coverage
4. Business Interruption Insurance
5. Cyber Extortion Insurance
6. Network Security Liability Insurance
7. Privacy Liability Insurance
8. Media Liability Insurance
9. Regulatory Fines and Penalties Insurance
10. Social Engineering Fraud Insurance
11. Errors and Omissions (E&O) Insurance
12. Technology Errors and Omissions Insurance

What is the difference between cybersecurity and cyber insurance?

Cybersecurity

Cybersecurity refers to the practices, measures, and strategies put in place to prevent, detect, and respond to cyber threats and attacks. It involves a range of technical, administrative, and physical safeguards designed to protect digital assets, networks, systems, and data from unauthorized access, breaches, and other malicious activities. The primary focus of cybersecurity is on proactively reducing the likelihood of cyber incidents by implementing security controls, protocols, and best practices. This includes tasks such as firewalls, intrusion detection systems, encryption, employee training, regular software updates, vulnerability assessments, and incident response planning.

Cyber Insurance

Cyber insurance, on the other hand, is a financial tool that offers protection against the financial losses and liabilities that can result from cyber incidents. It provides coverage for various expenses, including costs associated with data breaches, business interruption, legal and regulatory fines, ransomware attacks, and third-party claims. Cyber insurance acts as a safety net, helping businesses recover from the financial impact of cyber incidents and manage the aftermath. It typically involves purchasing a policy from an insurance provider, and the coverage options can be tailored to match the specific risks and needs of the business.

How much does it cost to get a cyber security policy?

The cost of a cyber insurance policy can vary widely based on several factors, including the size and type of your business, your industry, your level of exposure to cyber risks, the coverage limits you choose, and the specific terms and conditions of the policy. Generally, the cost of a cyber insurance policy can range from a few hundred dollars to several thousand dollars per year.

Smaller businesses with less complex operations might find policies with lower premiums, while larger enterprises with higher revenue, more sensitive data, and more significant cyber risk exposure could have higher premiums. Other factors that can influence the cost include your history of cyber incidents, the effectiveness of your cybersecurity measures, and the location of your business. To get an accurate quote for a cyber insurance policy, it’s recommended to work with local insurance professionals who specialize in cyber insurance.