What Is Cyber Insurance? – Nationwide (2024)

FAQs

What Is Cyber Insurance? – Nationwide? ›

Cyber insurance from Nationwide

Cybersecurity insurance (cyber insurance) is a product that enables businesses to mitigate the risk of cyber crime activity like cyberattacks and data breaches.

From defraying costs following a potential incident to indemnification for legal fees, small business cyber insurance helps ensure protection against events like data breaches of client information and ransomware attacks.

Your coverage for security breach remediation and notification expenses would include purchasing an identity fraud insurance policy, credit monitoring services, computer forensics and access to a Breach Coach for advice regarding initial breach response. Cyber insurance also can help protect you before a breach.

Cyber insurance can assist you with managing your cyber risks and preventing cyber incidents from occurring. Insurers can offer access to cyber security expertise and threat intelligence services, conduct IT vulnerability assessments, offer staff training on cyber security and help with password management.

Any business that stores or processes sensitive information should consider cyber liability insurance. Consider coverage if you store data such as customer names and addresses, Social Security numbers, medical records, and financial information such as credit card information.

Companies will be required to have cyber insurance policies in place to protect against cyber threats. Cyber insurance will be a mandatory requirement for businesses that want to do business with other companies. The cyber insurance market will continue to grow in 2024.

How much does cyber insurance typically cost? For small businesses, annual cyber insurance premiums can range from $1,000 to $7,500. This range is dependent on several factors, which we discuss below. A recent survey found that the majority of cyber insurance underwriters expect rates to increase slightly in 2024.

Loss or corruption of data. Business interruption. Multiple types of liability. Identity theft.

The global cyber insurance market tripled in volume in the last five years, expanding to gross direct premiums of around USD 13 billion in 2022, according to the Swiss Re Institute (SRI). In just two years, the market has seen significant rate increases and re-underwriting to restore profitability.

How much cyber insurance do I need? ›

Most small businesses purchase a cyber liability insurance policy with a $1 million per-occurrence limit, a $1 million aggregate limit, and a $1,000 deductible.

A firm's employee unwittingly clicks a link in a phishing email resulting in ransomware locking out the firm's ability to utilize business critical technology until a ransom demand is paid (or they're able to restore network from back-ups).

Cyber insurance policy provides a safety shield for businesses and individuals against malware and ransomware cyber-attacks.

Every business with a cyber exposure would benefit from cyber insurance—that's almost every business! Not sure if you have a cyber exposure? Businesses that rely on computer systems to carry out business operations, store data or transfer money by electronic means are at risk and should purchase first-party coverage.

You could probably figure out the simple answer on your own: cyber insurance costs more because of the huge rise in data breaches and hacks in the post-COVID world. When the pandemic hit and employees started working remotely en masse, it created a cybersecurity crisis.

Cyber liability and crime insurance face several overlaps, and the offenses often unfold in similar ways. Still, these distinctions draw the line between the two: Crime insurance responds to direct losses, whereas cyber liability insurance deals with indirect losses.

IN SHORT: Crime policies cover the direct loss of your funds, whether through maleficence, employee dishonesty or social engineering whereas cyber policies cover economic damages arising through a failure of network security or privacy controls which may cause indirect losses.