Recovering from a cyber attack can be expensive, potentially costing your business time, money, and even its reputation. Cyber insurance is one option that can help protect you from these financial losses. If you’re considering cyber insurance, it’s essential to discuss your needs with an insurance agent to find the best policy for your business. You’ll want to explore options like first-party coverage, third-party coverage, or a combination of both. Here are some general tips to help guide your decision.

What should your CYBER INSURANCE POLICY cover

When choosing a cyber insurance policy, make sure it includes coverage for key risks, such as:

• Data breaches involving the theft of personal information.
• Cyber attacks targeting your network or systems.
• Cyber attacks that affect your data held by third-party vendors.
• Cyber attacks worldwide, not limited to specific countries.
• Terrorist acts related to cyber threats.

You should also look for whether your cyber insurance provider will:

• Defend you in lawsuits or regulatory investigations (check for “duty to defend” wording in the policy).
• Provide coverage that goes beyond your other existing insurance.
• Offer a breach hotline available 24/7, so you can quickly respond to cyber incidents.

What is FIRST-PARTY COVERAGE and what should you look for

First-party cyber coverage protects your business’s data, including information about employees and customers. This type of coverage typically includes costs related to:

• Legal counsel to help you determine your notification and regulatory obligations.
• Recovery and replacement of lost or stolen data.
• Customer notification services, including call center support.
• Lost income due to business interruptions caused by a cyber attack.
• Crisis management and public relations services to help manage the damage.
• Cyber extortion and fraud related to ransomware or other cyber threats.
• Forensic services to investigate the breach and determine what happened.
• Fees, fines, and penalties associated with the cyber incident.

What is THIRD-PARTY COVERAGE and what should you look for

Third-party cyber coverage protects you from liability if a third party, like a customer or partner, brings claims against your business following a breach. This coverage generally includes:

• Payments to consumers affected by the data breach.
• Litigation costs and responses to regulatory inquiries.
• Claims and settlement expenses related to lawsuits or disputes.
• Coverage for defamation and copyright or trademark infringement claims.
• Other settlements, damages, and judgments resulting from the breach.
• Accounting costs for dealing with the financial fallout.

When selecting a cyber insurance policy, make sure it covers the specific risks your business faces. First-party coverage helps protect your company directly, while third-party coverage offers protection if others bring claims against you. Both types of coverage are important, and a comprehensive policy can provide the peace of mind that your business is prepared for potential cyber threats.

Protecting your business from cyber attacks is about more than just technology — it’s also about having the right financial safety net in place. Talk to your insurance provider to ensure your business is fully covered.

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Abacare

That’s why today we present you our partner Abacare.

Abacare is a group of insurance brokerage companies.

They are specialized in advising and servicing both individual and company clients professionally. They take responsibility in protecting your future and that of your family and/or your business. With excellence and new technologies, they commit to provide innovative solutions to optimize cost and efficiency for their clients.

With trust, care and integrity we protect our client’s best interests.

Abacare is a fully licensed insurance broker in Mainland China, Hong Kong SAR, Singapore. With over 100 employees speaking 15 different languages, they will be able to help you.

You can contact them through their official website below.

Stay tuned, stay secure, and let’s make Cybersecurity Awareness Month count!

*Article inspired by the guide “Cybersecurity for small business” written by the Federal Trade Commission (FTC).

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We at APIS Consulting can assist you in enhancing your cyber security knowledge and IT security procedures. If you require any trainings, cyber security audits, to boost your IT security, or to outsource your IT security, you can get in touch with us via email at contact@apisconsulting.cn or by adding Antoine on WeChat using the QRcode below.

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