Types of insurance

It is beyond the scope of this outline to provide a detailed account of the insurance industry, but listed here are some of the most important types of insurance that are relevant to information security-related risks.

·         Banker's Blanket Bond, also known as a fidelity bond, covering the direct theft of cash or funds either in transit or on premises, employee infidelity and forgery;

·         Professional Indemnity (PI) insurance, also known as Errors and Omissions (E&O) insurance, covering failures in human professional judgement;

·         Directors and Officers (D&O) insurance covering the liabilities of those with formal responsibilities and liabilities under organisation legislation;

·         Traditional property insurance covering damage and destruction of buildings, equipment, plant, finished goods, raw materials, etc.;

·         Traditional crime policies covering theft;

·         Specialised computer crime insurance policies covering 'direct loss' of 'tangible property' such as cash, negotiable instruments, securities, etc.;

·         Business interruption insurance, protecting a business owner against losses resulting from a temporary shutdown because of fire or other insured peril and providing reimbursement for lost net profits and necessary continuing expenses, including the expense of carrying on business at another temporary location.