Cyber insurance is an insurance solution designed to protect businesses from the financial consequences of cyber malfunctions and attacks. The need for this insurance has grown due to the increase in cyber attacks and the escalating risk to information security. This insurance covers costs associated with responding to cyber events, including data recovery, legal expenses, compensation to third parties, and more.

Coverage Side A

  • Data Recovery Expenses: Covers costs related to the recovery of damaged or deleted data.
  • Event Management Expenses: Includes costs of managing the incident through IT and legal experts.
  • Loss of Income: Compensation for economic losses resulting from temporary work stoppage.
  • Extortion and Ransom: Covers ransom payments demanded by hackers to release information or systems.
  • Regulatory Fines Payment: Includes costs of fines for violations of regulations like GDPR.
  • Legal Expenses: Covers costs for regulatory and legal investigations.

Coverage Side B

  • Third-Party Damage Coverage: Protects the company against claims that may be filed against it as a result of a cyber event, such as claims for privacy breaches.

Cyber Risks Covered by the Insurance

  • Ransomware Attacks: Malicious software that encrypts data and demands a ransom for its release.
  • Viruses and Malware: Can cause data deletion and theft of sensitive information.
  • Data Breaches: Potential for unauthorized access to sensitive information.
  • Security Breaches: A wide range of attacks aimed at crashing systems and causing damage.

Benefits of Purchasing Cyber Insurance

  • Financial Protection: Covers direct and indirect expenses and damages resulting from cyber attacks.
  • Professional Support: Access to experts for response management and rapid recovery of the business.
  • Prevention and Consultation: Improvements in security systems and prevention of future attacks.
  • Legal Support: Coverage for legal expenses in case of claims.

The insurance is designed for a wide range of organizations and companies, offering broad protection that can help maintain smooth and secure operations in the modern digital era.

At LAMDA, we specialize in consulting and unique insurance solutions for companies and corporations.