Here we have highlighted just a few of the ways cyber insurance can benefit organisations in your sector in a time of crisis:
This section of cover will generally pick up all of the costs involved in responding to a cyber incident in real time, including IT security and forensic specialist support, gaining legal advice in relation to breaches of data security. One of the most important aspects of a cyber policy is that it provides access to the right specialists when time if of the essence as well as paying for their services. This can be the great proportion of the costs of a claim.
This cover aims to reimburse loss of profits and increased costs of working as a result of interruption to a business’s operations caused by a cyber event. It works in a very similar way to traditional business interruption insurance except the trigger is a non-physical peril as opposed to a physical one. While third party liability claims tend to be less common in cyber insurance, it is still important to have cover for them under this section. This can help you to maintain good relationships and become a provider trusted for their robustness.
This section covers failure to prevent an individual’s data being breached. Cyber criminals have many ways to monetise their misdeeds. Selling personal information on the dark web is one. With every breached database, more and more credentials, credit card details, passport information etc. appear for sale.
Cover for costs to draft, send and administer notification communications to those whose data has been stolen, misplaced or compromised. The average cost of a stolen or lost record is $148, – Credit monitoring is often also included to ensure those affected are not subject to any fraudulent activity.
This cover will deal with any costs incurred should an individual or organisation take legal action against you over any alleged negligence in relation to your cyber activities. This is particularly important as there are likely to be many claims for compensation for distress following data breaches in the coming years whilst the parameters of this sort of claim are defined.
This is something that is not necessarily considered in the first instance however bad publicity can have a devastating effect on a brand as in the case of the Talk Talk breach where Dido Harding personally faced strong criticism for her response.
Consumers are becoming more aware than ever of the value of their personal data and how this can be exploited so it is not surprising that 47% of customers would consider no longer using a business due to breach. And research from the Hiscox Cyber Readiness Report 2020 has shown one in eight (13%) business experienced a reduction in business performance indicators such as their share price in 2020 (up from 5% the previous year). So it is easy to see how this seemingly small facet of cover can make a massive difference in saving your brand and your business.
This covers any third party claims arising out of defamation or infringement of intellectual property rights. Media cover started out in cyber policies to offer protection in respect of online content only, but as policies have broadened over the years, it’s not uncommon for full media cover to be provided.
This can cover the cost of certain fines and penalties that a regulatory body might enforce on an organisation as a result of them having suffered a data breach in so far as these are legal.
It’s important to note that cyber insurance includes a wealth of other benefits which can be found here:
Insurance should only form part of your risk management strategy. Here is a brief overview of some of the areas we would advise you look into and how we can assist you to ensure your business is as robust as possible.
Insurance should only form part of your risk management strategy. Here is a brief overview of some of the areas we would advise you look into and how we can assist you to ensure your business is as robust as possible.
Cyber Risk Report – These reports can provide a score akin to a ‘cyber credit check’ which is given context by the peer to peer comparisons and can help you to know where to start when tightening up your security.
Cyber Security Training – Cyber insurers look favourably upon this sort of proactive approach and some providers even include an element of this sort of insight into their packages.
Cyber Security Certification – These certifications can provide reassurance to your clients that you take cyber threats seriously and can be a trusted partner in their supply chain.
Incident Response Planning – A comprehensive incident response plan will mean you are able to deal with any incidents and dramatically mitigate any losses you may incur.
Security Consultancy – For turnover of £1m – Audits. From penetration testing to regular consultancy with a virtual CISO.
A Gloucestershire charity suffered a hack into the marketing database where the information of your regular supporters is stored. Names, addresses and phone numbers for more than 1,000 supporters were captured from the system, requiring notification to all 1,000 supporters.
We can help you connect with the right cyber insurer and tailor a risk management program to suit your business.
For a free no obligation conversation please contact one of our cyber insurance experts on 01242 898387 or Contact us
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