Any business that relies on computer systems to store or transfer data is exposed to cyber risks. In today’s digital world, this is most businesses. With more businesses than ever investing in Cyber insurance, we have outlined five things to consider if your business has not purchased this type of cover:
1) Cyber-crime is the fastest growing crime in the world, and it is unlikely that your standard Commercial insurance policy would protect your business against this type of claim
The widespread use of technology and the internet increases the digital risks that your business is exposed to, making it increasingly vulnerable to an attack. One type of cyber-attack that has become a more frequent threat is that of social engineering which can result in significant losses for companies of all types and sizes.
Cyber insurance provides cover for Funds Transfer Fraud and Social Engineering losses, including the costs of investigation and the actual loss of funds, ensuring your business does not suffer as a result of a cyber-crime attack.
2) Technology systems are critical to operating your day to day business, but their downtime is not likely to be covered by a standard Business Interruption insurance policy
Most businesses rely on computer systems and other technology to operate their business such as sales software, email, or customer management systems. If these systems were bought down during a cyber-attack, Cyber insurance would provide cover for the loss of income or expenses your business suffers. It is unlikely that a standard Business Interruption policy would cover these costs.
3) Data is one of your most important assets however, it is not covered by standard property policies
Data or information is the most important asset for most business however, many do not realise that a standard property policy would not respond if this data is lost, damaged, or destroyed. Cyber insurance provides comprehensive cover for data restoration and even re-creation of your data if it is lost.
4) Complying with breach notification law costs time and money
Europe’s General Data Protection Regulation (GDPR), Australia’s Notifiable Data Breaches Act, Canada’s Digital Privacy Act, and several US state laws make it a legal obligation to notify a breach across many territories. When a business loses sensitive personal data, they must provide written notification to those individuals that were potentially affected, or they will face hefty fines and penalties.
Following a data breach, it is becoming increasingly common for businesses to voluntarily notify individuals to protect their brand and reputation. Cyber insurance provides cover for the costs associated when notifying a breach even if it’s not legally required and can also cover the associated regulatory fines and penalties.
5) A good Cyber policy provides access to a wide range of incident response services
Responding to a cyber-event requires a range of specialists – from IT forensic firms to specialist PR agencies – that help deal with both the immediate aftermath as well as the longer-term consequences of a cyber-attack. SMEs are being increasingly targeted by cyber-criminals however, many are unlikely to have the expertise required to respond to a cyber-event in house.
Should you need to make a claim, Cyber insurance will provide you with support to a wide range of experts that will take the matter off your hands. Without this support, it will take a business on average 4-6 weeks to respond to a cyber-incident, compared to those with a Cyber insurance policy who will usually be up and running just 3-4 days after an incident is first notified.
How we can help
Our team have experience in arranging Cyber insurance for businesses of all types and sizes. We partner with a leading cyber provider to deliver policies that are purpose-built to protect our clients against today’s digital risks. We also provide specialist risk management advice to help you mitigate emerging risks and reduce the likelihood of having to make a claim.
To find out more about protecting your business against cyber risks, contact Jason Cohen:
JasonCohen@hamiltonleigh.com