The world is moving more and more online every year and COVID19 has certainly helped speed up that process. Working from home relies heavily on being able to work online in the cyber world. This has created new opportunities but also new risks for both personal users and for businesses.
With lots of sensitive data being sent, worked with and uploaded every day you need to ensure that your data and your client’s data is secured. You also need to get cover in case you have a breach or cyber-attack. We often insure ourselves against physical theft or vehicle accident but often not against cyber attacks which can often be more costly.
Imagine this scenario, your company gets hacked and some of your clients information is stolen. You then have to hire an investigator and a cyber security expert to sort out the situation. This is before you have compensated your client or paid potential legal fees. These fees can quickly add up and potential cripple your business. This is why you need Cyber Insurance.
What Does Cyber Insurance Cover for a Business?
Cyber Insurance cover does vary from policy to policy, but their aim is to cover you for any cyber related incidents. For more information you can speak to your broker who can advise you on your policy. The two main types of cover for Cyber Insurance are:
Data Breaches – A data breach is a breach of security that leads to the destruction, loss, alteration, unauthorised disclosure of, or access to, personal data or confidential information transmitted, stored or otherwise processed on your computer systems or the computer system of a service provider.
Cyber Incidents – A cyber incident is a malicious act, malware, human error, DoS attack, theft of data, having an impact on your computer system or the computer system of a service provider or a reasonable suspicion of the same.
Besides the main cover options, there are also some extension covers:
- Data Breach Response – This covers all the costs relating to the data breach including investigator fees, notifying related parties, credit & identify theft monitoring, costs of public relations and legal fees.
- Administrative fines – Reimbursement of legally insurable fines and penalties imposed by a supervisory authority following a data breach.
- Restoration – cover for the restoration costs of the damage caused by the attack
- Business interruption – cover for any loss of business or revenue experienced due to the cyber attack
- Cyber extortion – Reimbursement of ransom amounts and other costs paid to resolve a cyber extortion event.
- Cyber crime – this cover will reimburse you for funds illegally taken as a result of a cyber attack.
- PCI-DSS – Specified costs cover and reimbursement of fines or penalties levied by a payment card brand following a breach of Payment Card Industry Data Security Standards caused by a cyber incident.
- Confidentiality and privacy liability – Any damages, legal fees and settlements due to the breach or loss of confidentiality due to the cyber attack.
The world is a fast changing place with many more cyber-attacks occurring each year. If a business has not taken out the necessary, cover they could find themselves in a tricky situation. These types of cover can seem confusing, but luckily our brokers is ready to assist you in getting the right cover for your needs.
With over 22 years of experience, we adapt with the times to suit the needs of our clients. Contact a broker today!