Cyber insurance can protect you against the consequences of a data security breach
Does your business:
- Rely on computers for the running of the business?
- Have staff using e-mail?
- Handle personal customer data?
- Take card payments and/or hold credit card details for your clients?
- Regularly share data?
- Have home-based staff?
- Have a website or app?
If any of these facts apply to your business then it will be vulnerable to cyberattacks and your business is at risk of being targeted by hackers.
If you should fall victim to an attack, then it could be catastrophically damaging to your business. In addition to your liability to your stakeholders, should their information be compromised, you could also suffer from financial loss.
Furthermore, keeping information secure is vital. In addition, a data breach could mean you are violating GDPR regulations as you are duty bound to keep client and prospect information safe. You could by culpable for any breach which leads to the exposure of such information.
A good cyber insurance policy
The right cyber protection would cover both your losses and losses and actions taken against you by third parties, including clients, for:
Cyber liability - where a claim is made against you by another party for reasons such as:
- Financial loss or suffering following a data breach
- Loss of data including a client’s/customer’s confidential information
- Transmission of a virus or malicious software to another party’s system
Your financial losses - known as a first-party cyber loss, which can include:
- Costs of professional investigations in order to identify the nature and extent of the breach and who is responsible
- Costs to repair any damage to the system and data restoration
- Business interruption - loss of income due to system downtime or inability of the business to operate
- Increased costs for overtime/extra workers
- Theft of funds/diversion of money due to e-mail compromise
- Regulatory fines and penalties due to breach of GDPR
- Costs of complying with an investigation
- Extortion/ransom demands
- Costs incurred in notifying those affected and the Information Commissioner’s Office (ICO)
- Public relations and brand reputation remedial costs following a breach