Cyber Assurance - What is it?

Understanding cyber insurance

Cyber insurance has become an important tool for companies seeking to protect themselves against potential financial losses caused by cyber attacks, the #1 risk in business. But how do insurers determine the cost of their coverage? What are the factors that influence rates?

Risk factors:

Risk is a key factor in determining cyber insurance prices. The more a company is exposed to IT security risks, the higher the cost of insurance. That's why, in addition to having cyber insurance, it's important to constantly check your company's security.

Factors such as

• Company size: larger companies tend to be more exposed to cyber security risks due to the large number of employees and the many devices connected to their network.

• Business sector: certain sectors, such as financial services and healthcare, are more likely to be targeted by cybercriminals.

• Type of data stored: companies storing sensitive data, such as financial or health information, are considered to be at higher risk.

• Security measures: companies with strong IT security policies, such as the implementation of two-factor authentication and regular employee training on security practices, may be considered to be at lower risk.

Coverage limits

Another important consideration when pricing cyber insurance is the amount of coverage a company needs. Coverage limits determine the maximum amount the insurer will pay out in the event of a claim. The higher the coverage limit, the higher the cost of insurance.

In general, companies should choose a coverage limit that reflects the potential cost of losses due to IT security incidents. However, it is important to remember that insurers will not pay for losses that have been caused by negligence or a lack of adequate security measures.

Insurance cover

The guarantees offered by each insurer affect the price of cyber insurance policies. The more coverage you have, the more you pay.

At Dattak, we offer a dynamic insurance solution with comprehensive cover tailored to the needs of each company: with additional options such as :

Cyber fraud: We cover the financial consequences of cyber fraud.

Example: Your company is the victim of a cyber-attack, and the criminals break into your computer system and send an e-mail to your finance manager asking him to issue a bank transfer. We'll take care of the misappropriated funds.

Telephone overbilling: We cover the extra costs incurred as a result of fraudulent use of your telephone lines.

Example: Your company is the victim of a cyber attack, and the criminals use your telephone lines to call premium-rate numbers. We cover the extra costs.

Notification costs: We cover the costs of notifying the authorities and the persons concerned in the event of theft of personal data.

For example, if your company is the victim of a cyber-attack, you are obliged to notify all your customers affected by the attack, as well as the French Data Protection Authority (CNIL).

Monitoring and surveillance costs: We cover the costs incurred to detect non-compliant use of personal data.

Example: Your customers' data is leaked and includes sensitive information and/or information that directly or indirectly identifies a customer. We incur costs to ensure that this data is not used for malicious purposes.

Data reconstitution costs: We cover the costs of reconstituting the data on your usable backups.

Example: Following a cyber attack, your company's data is affected. We cover all the costs involved in restoring your data.

Costs of restoring your computer system: We cover the costs of restoring your computer system to working order.

Example: Following a cyber attack, your company's computer system is affected. We cover all the costs involved in restoring it to the same working order as before the attack. Cyber risk is the number 1 risk for any company, whatever its size.