Many experts estimate that in the coming years, cyber-attacks will reach almost every business and company in the world. With these data, the importance of building a cyber strategy in advance, designed to prepare the company for a variety of possible scenarios, is clear. This is all the truer when it comes to tech companies and start-ups, which often hold a lot of information, complex and important infrastructures, and advanced technology, the damage to which could cause significant damage to the company and even threaten its operations.
To give them protection, cyber insurance was created for technology companies, which provides insurance coverage against many consequences associated with a cyber-attack.
What Does Cyber Insurance for Technology Companies Include?
Cyber insurance is comprehensive insurance that considers many issues related to possible attacks:
- Beginning with the expenses involved in managing the attack incident, which includes many personnel and an extensive response team, use of various external services such as lawyers, IT and PR personnel, information recovery expenses, and more.
- Of course, the insurance also covers the payment of the ransom that companies and businesses are forced to pay, without choice, to the attackers, as well as any extortion-related expenses involved in this.
- Payment of fines that are insurable – sometimes, a cyber-attack reveals problematic procedures of the company, including about keeping information and the privacy of its customers and third parties, which exposes it to the payment of fines for non-compliance with GDPR, and for legal expenses on regulatory investigations.
- Cyber insurance for technology companies will also insure the companies against claims that may be filed against them.