Cyber insurance
Cyber security insurance, also referred to as cyber insurance or cyber liability insurance, is a deal that an organization can take out to mitigate the financial risks involved in online business. For a monthly or quarterly fee, the insurance transfers a portion of the risk to the insurance provider.
Cyber insurance is a new and emerging industry. Companies that purchase this type of cybersecurity insurance are now considered to be early adopters. Cyber security policies can change month to month as the associated cyber risks are dynamic and fluctuating. Unlike established insurance plans, cybersecurity insurance policy insurers only have limited data to shape risk models to establish insurance coverages, rates, and premiums.
Cyber insurance has its genesis in Errors and Omissions (E&O) insurance, a category of separate insurance that protects against errors and defects in the services provided by an organization. E&O insurance is similar to product liability...