The so-called cyber crime continues to increase and accordingly the damage in the financial area that is caused by it grows. Especially for medium-sized companies that have their customers’ sensitive data or that work with highly sensitive data themselves, are particularly hard hit. Damage can then quickly amount to several hundred thousand euros up to the millions. In the following article we will shed light on the individual benefits of cyber insurance and when exactly it takes effect.
Image source: shutterstock.com
–
What is really behind cyber insurance
This area of insurance is still quite new, so one or the other consumer may not even be aware that such an insurance even exists. Basically, this is a form of insurance that covers damage caused by attacks by hackers or other forms of cyber crime. The damage caused by such an attack by hackers or other criminals can vary widely. Therefore, the GDV, i.e. the General Association of the German Insurance Industry, drafted framework conditions in the form of so-called model conditions. These regulate the type and scope of regulation in the event of damage. We will look at how this looks in detail later. These model conditions, designed by GDV, are primarily intended for medium-sized companies with up to 250 employees and an annual turnover of up to 50 million euros. That is likely to be the main clientele that hackers and cyber criminals target.
What cyber insurance covers in detail
Basically, almost all damage is covered. If, for example, a company’s customer suffers damage, i.e. so-called third-party damage, then this is also caused by the Cyber insurance covered. But all so-called internal damage to the company is also regulated. These are now basically set up in a very diverse way. It is not just about the mere compensation of the actual damage itself, but also about the entire restoration costs. An injured company can also employ so-called computer forensic experts and the insurance company bears the costs. The repair of any damaged software or systems, the reprocessing of data and even the use of crisis management are also covered by the insurance. Even lawyers who specialize purely in cyber crime can be hired at the expense of insurance. Of course, the insurance also covers all costs that the company may incur due to criminal defense that may be necessary. This can be the case if an aggrieved customer of the company sues the company.
In short, a company that must or can expect to become a victim of a hacker attack or other types of cyber crime is well advised to take out such insurance.
similar posts
–
