Cyber insurance covers a business’s liability and its ability to manage the impact of a cyber incident on its systems and finances. In addition, there may issues with third parties you deal with such as a loss of confidential data, transmission of a virus or missing funds.
We would strongly advise all businesses, however large or small, with any reliance on systems and data, to consider protecting their online business. This should be treated with just the same level of importance as covering tangible assets – if not more so.
As part of our service we make it our business to fully understand the requirements of our business customers and prepare suitable levels of protections should you suffer an attack. That way we are able to ensure customers are doing everything they can to avoid a cyber-attack or data breach. It is our firm belief that prevention is better than cure. Whilst very prudent measures can be taken by businesses around IT infrastructure such as firewalls, encryption and passwords there is also the very obvious issue of human error to consider. In the event that an incident does occur, cyber insurance provides a valuable safety net.
What protection is cyber insurance designed to provide?
There are many and varied types of cyber threats occurring every day. Depending on the needs of the business, cyber insurance can provide cover for:
Ransomware and extortion: in the event that a hacker tries to hold your business to ransom, cyber insurance would cover the ransom cost and provide support to manage the situation. It would also provide the services to restore system security. For more information on how to protect your business against a potential ransomware attack, read this Ransomware Readiness Guide.
Breach costs: providing support in the event of a data breach, such as undertaking investigations and providing legal and communications services. It would also provide the services to restore system security.
Privacy protection: if your customer data is compromised, cyber cover would meet the cost of any claims brought against you for not keeping customer data secure. This may also include any associated costs, such as regulatory investigations that may be required and incur cost.
Cyber business interruption: if your business is hacked and your systems are compromised, this may prevent you from operating. If this were to happen, cyber insurance would compensate you for loss of income while your business is temporarily shut.
Hacker damage: in the event of a hacker damaging your website, data, systems or computer programmes, cyber insurance would cover the cost of repair or replacement.
Crisis containment: An online security breach could have a detrimental effect to the reputation of your business. Cyber insurance would provide the support to mitigate any reputational damage. It is critical that customers have access to 24hour & days a week crisis management to identify what to do and resources to deploy to solve the problem.
Crime and social engineering: An important but normally an addition to a cyber policy is protection against loss of money or other assets due to a fraudulent or dishonest act by a third party. This might be computer fraud or social engineering. Identity fraud – someone pretending to be you – needs consideration also.