Cyber Insurance – Make sure you protect your business
Does your business utilise email? Does your business have a website? Does your business store client information electronically?
If the answer is yes to any of these questions, then you are a prime target for cybercriminals.
That may sound drastic, but the figures represent themselves: globally, the cost of a data breach for enterprises has risen 11% in 2017, where breaches can range from thousands to millions in some instances, depending on the size of the organisation – not to mention the reputational damage that comes with it. The way I look at it is, would you drive your car without insuring it first? Imagine the costs you would be liable to pay if you crashed – legal fees, third-party fees, the list could go on. This is the same in a business. Cyber insurance won’t stop a cyber-attack, but it will give you the peace of mind that you won’t be run into the ground if you fall victim to one.
What is cyber insurance?
A cyber insurance policy, also referred to as cyber risk insurance or cyber liability insurance coverage (CLIC), looks to help organisations mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach. It covers the time and money you spend dealing with a cyber-attack, together with the costs of putting your business back together following a hack or a data breach. The common statement we hear from customers is “it won’t happen to me” or “we’re too small to be the target of a cyber-attack” but the reality is that EVERYONE could be a victim of a cyber-attack, no matter how small you are. Cyber criminals are becoming much smarter therefore we must too.
How do you cover yourselves?
Cyber insurance typically covers expenses related to first parties as well as claims made by third parties. It takes away the worry of having to investigate, repair and replace after a cyber-attack and the cost and management of your reputation. The reality is most organisations tend to be reactive rather than proactive, which isn’t the most cost-effective route to take. When looking at insurance, you’ll need to make sure you have taken the correct steps beforehand, Insurance companies will look to see if you’re performing the best practices to help mitigate against a threat – looking at whether you’ve had security assessments, performed phishing attacks or had a penetration test etc. Think of it like car insurance – if you fit your car with a black box or an alarm, it brings down your premium but if you leave the key in the ignition and it gets stolen then they won’t be willing to help. It is up to you to decide what extent you would like to be covered but the more you protect your company’s asset the less you’re going to lose.
Do we really need cyber insurance?
Yes. With new technology comes new risks to your business. Cyberspace is swarming with harmful viruses and scandalous hackers, and both you and your business need protection from the damage they cause. Even the smallest loophole could cost you thousands and before you know it, you could be the next headline in the paper. OK maybe a bit dramatic, but it could shut you down for days causing you to face awkward questions with your customers.
Cyber liability insurance covers the cost of repairing and restoring your systems, data and website following a breach or a hack. It also covers the legal costs involved in giving regulators and customers the unwelcome news, as well as paying legal fees and compensation costs if you’re sued by anyone for losing their personal data.
Still think you won’t be a victim of a cyber-attack?
There are various companies that provide Cyber Insurance. We have listed a few below but make sure you do your research to find out what you are being provided. We are happy to assist if you need help.