Cyber Insurance

Cyber insurance is coverage that protects organizations from financial losses associated with cyber incidents and data breaches.

Cyber insurance policies often include coverage for legal liabilities stemming from customer data breaches. This could involve defending against lawsuits, settlements, and regulatory fines imposed for non-compliance with data protection regulations.

To obtain cyber insurance, organizations must often demonstrate specific standards for securing customer data using or mandated identity and access management practices and safeguards.

Traditional MFA methods and passwords are often considered insufficient protections for safeguarding customer data by insurers.

Your company may face higher premiums or non-renewals for cyber insurance policies if you are using these outdated methods with your customers.

Nine of the top 10 cyber insurance agencies require or recommend passwordless authentication in order to provide the best policies and rates to companies.

When you provide your customers passwordless continuous authentication based on FIDO2 standards, insurers are more likely to offer you:

• The strongest coverage
• The lowest premiums
• No coverage exclusions

Cyber insurance protects your company against the financial and operational consequences of a customer data breach:

• Financial Protection: Insurance can help cover costs associated with a data breach, including forensic investigations to determine the cause and scope of the breach, notification costs to inform affected customers, credit monitoring services for impacted individuals, and legal fees for defending against lawsuits or regulatory fines.
• Business Interruption Coverage: Many cyber insurance policies include coverage for business interruption expenses. This helps compensate for lost income and extra expenses incurred while operations are disrupted due to a data breach.
• Legal and Regulatory Support: Cyber insurance provides coverage for legal liabilities arising from a data breach, such as defense costs, settlements, and damages awarded in lawsuits. It also helps cover regulatory fines and penalties imposed for non-compliance with data protection laws..
• Reputation Management: Data breaches can damage a company’s reputation and erode customer trust. Cyber insurance often includes coverage for public relations and crisis management expenses to help mitigate reputational harm and restore customer confidence.