With the increasing reliance on technology, insurance against electronic risks has become essential to protect businesses and individuals from cyber threats, such as data breaches or cyber extortion. Electronic equipment insurance covers the damages resulting from these risks, including the costs of recovering lost data, handling legal issues arising from breaches, and compensating for business losses. In this article, we will review the electronic risks that can be encountered and how to insure against them.
Electronic insurance is a type of insurance that is practiced through electronic or smart systems, providing services such as issuing and marketing insurance policies, offering quotes, collecting premiums, and processing claims and complaints. This system allows individuals and businesses to manage all their insurance policies, such as health insurance and life insurance, in one place.
The electronic equipment insurance policy, stored and managed through electronic insurance accounts, frees policyholders from dealing with paper transactions, making it easier to manage these documents and protect them from loss or damage.
Safety and Security: The electronic equipment insurance policy offers high protection against loss or theft, and can be accessed at any time and from anywhere.
One-time KYC Submission: Once the "Know Your Customer" (KYC) details are registered in the electronic insurance account, the user does not need to resubmit these documents when purchasing new policies.
Convenience and Flexibility: Users can purchase different insurance policies from multiple companies using a single account.
Easy Payment: Electronic systems allow for premium payments through electronic methods, eliminating the need for waiting or wasting time.
Comprehensive Management: Annual statements are provided that show all the policies owned by the insured, making it easier to track insurance coverage.
Data Protection: This covers the costs of recovering or repairing lost or damaged data.
Legal Liability: Covers lawsuits and legal expenses arising from cyberattacks.
Cyber Extortion: Covers the costs of ransom or investigations into cyber extortion.
Business Interruption: Compensates for revenue losses resulting from business downtime due to a breach.
Reputation Protection: Supports public relations campaigns to restore trust after cybersecurity incidents.
Device insurance refers to the protection of any electronic device, such as mobile phones, computers, or smart home devices, from risks that may affect them. Device security is a fundamental element for maintaining the security of networks and business data. It aims to protect peripheral devices from cyber threats and unauthorized access through insurance policies and the implementation of technical guidelines and tools that support this.
Device and Software Management: Track assets and manage software updates and patch packages to ensure all systems are protected with the latest updates.
Data Leak Prevention: Limit the transmission of sensitive data to unauthorized devices, such as USB drives, using solutions like Data Loss Prevention (DLP) systems.
Permission Management: Control user privileges to reduce the risk of privilege abuse or causing security breaches.
Data Encryption: Use encryption technologies to protect data stored on devices from unauthorized access.
Securing Internal and External Networks: Implement firewalls and apply Zero Trust Network Access (ZTNA) policies to ensure the integrity of data flowing between devices.
Detection and Response Tools: Continuously monitor systems to detect vulnerabilities and threats, ensuring appropriate actions are taken to address them.
Physical Security: Use locking systems and surveillance cameras to physically secure devices against loss or theft, and encourage employees to follow best safety practices. Additionally, repair or replacement costs are covered in case of damage, theft, or accidents. This insurance is an effective way to reduce unexpected financial losses and maintain productivity.
Implementing these measures within the company enhances security levels and reduces the chances of security breaches. To better protect your devices and sensitive information, your company might consider tailored solutions for peripheral device security.
Property insurance is vital for protecting physical and financial investments from unexpected risks, especially those involving high-value electronic devices and equipment. This type of insurance provides comprehensive coverage that ensures the policyholder is compensated for losses or damages caused by sudden and unforeseen incidents.
The insurance covers electronic devices and equipment, including data processing systems, medical electrical and radiological devices, and communication equipment. This includes all equipment that generates, stores, alters, or processes data and information. The insurance amount is calculated based on the replacement value of the damaged equipment with new devices of the same type and capacity, including shipping, customs, and installation expenses, minus depreciation.
The insurance includes three main sections:
Physical Damage to Devices:
A comprehensive coverage that includes damage resulting from accidents, electrical and mechanical failures, and other incidents such as fire, theft, or vandalism. Special coverages can also be added, such as for earthquakes, riots, or transportation.
External Data Media:
It covers the cost of replacing damaged storage media and restoring data, provided the damage is compensable within the first section.
Increased Business Costs:
Compensation for additional expenses incurred from using replacement equipment or emergency measures to continue operations, including rent, extra expenses, or data transfer costs.
The insurance amount is determined according to the cost of replacing equipment with new materials, including shipping, customs, and installation. For external data media, the amount covers the cost of recovery. As for increased business costs, the amount is based on the expected additional expenses.
There are some cases that the insurance does not cover, such as:
Losses due to pre-existing defects or design flaws.
Losses due to wear and tear or gradual damage.
Purely aesthetic factors cause damage.
Theft or damage resulting from earthquakes or hurricanes unless special coverage for these risks is added.
The policyholder can request additional coverage to include:
Transportation risks.
Air conditioning failure.
Additional expenses for air or expedited shipping.
Theft with a certain deductible.
Electronic property insurance serves as comprehensive protection for the assets of businesses and individuals, covering various types of risks that may affect electronic equipment and data media. It is advisable to carefully determine the scope of coverage and the insurance value to ensure complete protection of valuable assets.