Does your business need cyber insurance?
Most companies purchase general liability insurance to protect themselves from any claims arising from the wrongful or negligent acts of their employees. So, why would your company not need cyber insurance? As we become increasingly dependent on technology, cyber risk is one of the most talked about topics. The shift from post and paper records to digital email communications or data storage means that your business has a greater exposure to suffer a theft.
Data breach has now become an every-day occurrence but, unfortunately, as is the case with many insurance covers, most people do not recognise the need for the insurance until the disaster has already happened, when it is obviously too late.
Types of cyber claims
These cyber attacks can happen in many ways such as, theft of funds where a hacker will steal money from a company’s bank account; damage to digital assets whereby a hacker is able to damage the system which your company works on, resulting in huge business interruption costs and in many cases leaving your business in great reputational prejudice; or data breach and privacy crisis management in which the firm’s customers’ personal information is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network.
A Cyber Insurance policy typically covers:
Data breach costs
This section of cover will pay for losses incurred by your company which involve the responding to a cyber incident.
Hacker damage
Cover for costs as a result of damage to your computer systems.
Cybercrime
Cover for payments made as a result of extortion, ransomware attacks, theft of funds or unauthorised use of computer resources.
System Business Interruption
Cyber insurance may cover for business interruption losses as a result of a cyber related event.
Regulatory fines
Cover for costs and penalties that a regulator may impose as a result of a data breach.
Media Liability
Cover related to defamation or infringement of intellectual property rights.
Privacy Protection
Cover for third party claims against breach of personal data.
