The Cybersecurity Guide to Governance, Risk, and Compliance

CHAPTER 31Navigating the Cyber Insurance Maze

“In a world of complex digital ecosystems, cybersecurity insurance isn’t an option. It’s a necessity.”

Cyber insurance is a complex domain increasingly relevant in today's digital landscape. It begins with differentiating it from traditional business insurance and recognizing its critical role in contemporary business operations. Delving into the uses and misuses of cyber insurance unveils beneficial use cases, potential pitfalls, misunderstandings, and common missteps in the application and claim process. Navigating claim settlement involves dissecting why insurance companies may resist paying, comprehending the intricate details of policies and clauses, and developing effective strategies for claim management.

CYBER INSURANCE: A PRIMER FOR BUSINESSES

The advent of the digital age has ushered in a new era of risks and challenges for businesses across the globe. The proliferation of digital technologies and the internet has transformed how companies operate, opening up many opportunities. However, this digital transformation has also exposed businesses to various cyber threats. Cyber threats, data breaches, online fraud, and various forms of cyberattacks are now an unfortunate part of digital reality, making cyber insurance an indispensable part of modern risk management strategies.

Cyber insurance is a specialized form of insurance designed to protect businesses from internet‐based risks and, more broadly, risks relating to ...