In this digital age, it has never been more important to protect your business from cyber threats, as criminals are coming up with increasingly sophisticated ways to lay their hands on your hard-earned cash!
Cyber insurance offers a form of cover for your organisation in the event of a cyber-attack. It is key for businesses that use, send or store electronic data, which is true for most organisations these days. Cyber insurance can help your business to stay afloat by providing financial support should disaster strike.
Sensitive customer data is vulnerable to cybercrime, and there are a number of common online activities that criminals typically use. The three main ones include:
- Malware – Malicious software that installs itself in your systems via phishing or by exploiting vulnerabilities to allow the attacker to see your activities and hijack private data.
- Ransomware – A form of malware that attacks your computer system and encrypts data, giving your attacker the opportunity to demand a payment in exchange for the return of your data.
- Hacking – The partial or complete acquisition of a computer system or functions within it in order to access important data.
When a cyber-attack or privacy breach occurs, most cyber insurance policies will cover the first-party and third-party financial and reputational costs. The price of the policy will depend on several factors such as the business’ annual revenue, the industry it is in, the type of data it holds, and its current level of network security. Companies that hold huge amounts of personal data are at greater risk of cybercrime, so the cover for these businesses will tend to be more expensive.
Cyber insurance in general protects your business from the loss of funds, theft of data, or damage to digital assets, as well as any liability actions that might be brought against you. Most policies usually include the following:
- Pre-incident support – Assistance in managing your cyber risk to prevent incidents from occurring in the first place e.g. by conducting IT vulnerability assessments, offering staff training on cybersecurity, and by helping with password management.
- Post-incident support – Assistance from cyber specialists in the initial period following an incident. They will assess your systems, identify the source of the breach, suggest possible preventative measures for the future, and help with any legal requirements such as notifying your customers.
- Costs related to the security breach – Financial support for the costs that arise as a direct result of the incident e.g. notifying your customers, answering customer enquiries, public relations advice, IT support, and legal advice.
- Cyber extortion – A reimbursement of the ransom amount demanded by the attacker, as well as consultancy fees for dealing with the incident.
- Damage to digital assets – Protection against the loss, corruption or alteration of your data, as well as the misuse of computer systems and functions within them, assisting with asset replacement where necessary.
- Business interruption – Cover for the loss of income or resulting increased costs if a cyber-attack interrupts your business operations.
- Liability costs – Cover for your business in the event of a claim e.g. libel, slander, defamation, or the infringement of intellectual property rights.
When purchasing cyber insurance, the first step is to identify your unique risks, tailoring the policy to suit your individual needs. Compare the anticipated costs associated with a cyber incident with the related cost of the policy to ensure it will best serve your business.
At NIS, we have a wealth of experience in providing bespoke cyber insurance policies for our clients. If you would like to request a quotation, please call our friendly team on 01609 773 748 or request a quote today