Looking for Cyber Insurance?
With most things these days being driven by connectivity, it’s likely that you could encounter some form of cyber security breach no matter what industry you’re in and this could be very disruptive and very expensive.
Having a cyber insurance policy in place can help cover the costs associated with a breach including legal costs. Whether a client or customer is suing you, you need repairs, you’ve racked up hefty legal costs or you need to cover loss of earnings, it can help to ease the financial hit.
What is Cyber Insurance?
Cyber insurance is usually designed to help get your business back on its feet following a cyber attack. From repairing and replacing hardware and software, to covering the legal costs associated with liability claims resulting from loss of personal data. Depending on your policy, it can also help with data recovery and business interruption costs and can even cover ransom costs should your business be the subject to a ransomware attack.
What are Common Cyber-Attacks?
This is quite a broad term as it can cover anything from a simple computer virus, right up to terrorist-level activity. Often activated by phishing emails, baiting or scareware (pretending to be security software to prevent viruses, but actually including them), common cyber attacks can include:
Cyber Security and GDPR
The implementation of GDPR (General Data Protection Regulations) has seen an increased interest in cyber security and cyber insurance. Businesses are responsible, and can be held accountable, for their clients’ personal data and have an onus to protect it.
Although GDPR has seen a rise in public and commercial awareness as to the importance of protecting personal data, it is not directly linked to cyber protection and there is no legal requirement to take out liability insurance with respect to cyber attacks.
It’s also important to remember that cyber and data protection insurance is not just there to protect your business in the event of a deliberate cyber attack, it can also protect against accidental loss or sharing of sensitive information.
What Happens if You’re a Victim of a Cyber-Attack?
Even if you’re the victim of a lower level attack, it can still have harmful (and expensive) consequences for your business. A security breach can not only make people uneasy about your trustworthiness in the future, but you could be seen as unprofessional for not having processes or preventative measures in place.
The most immediately damaging thing that could happen is that your business bank accounts could be left open and raided, which could leave you financially crippled.
Cyber-attacks can also lead to your customers’ data being stolen and sold on, which could result in legal proceedings especially if identities have been stolen and replicated too.
This could all add up with fines, compensation payments and legal fees too, so even if you only use a simple laptop for admin, it may be worth investing in some reputable protective software, and investigate cyber insurance too.
Cyber Insurance – Useful FAQs
Numerous factors can impact on the cost of cyber insurance. These include the size of your business and it’s turnover, the volume of personal data and the level of detail stored, and the industry sector you operate in. The security you have in place can also be reflected in premiums.
This very much depends on your insurer and your individual policy. It’s important to check the small print as not all business interruption policies cover cyber crime. Similarly, if you’re taking out cyber insurance, it’s a good idea to make sure that business interruption caused by the incident is included in your policy.
No. There is no legal obligation to take out cyber insurance. However, contractual obligations can dictate a requirement for it, especially with respect to GDPR.