In today’s fast-paced digital world, businesses of all sizes are more vulnerable than ever to cyber threats. From data breaches to ransomware attacks, the risks are real – and growing.
This is where cyber insurance can help.
Cyber insurance cover, also commonly known as cyber liability insurance, can form part of any business’s insurance programme.
Every business is responsible for its cyber protection. The right cyber insurance policy will ensure you aren’t left exposed in the event of a cyber-attack and will provide you with the support needed to keep your business afloat.
What Does A Cyber Insurance Policy Cover?
A cyber insurance policy can cover the resulting costs from a cyber-attack and support your business to take steps in the right direction.
Whether you are a victim of data breaches, a security breach, or cyber-attacks, cyber insurance policies can cover both first-party and third-party financial losses and costs related to replacing electronic data or systems that may have been lost, damaged, stolen or corrupted.
First-party cover includes:
- Investigating cyber-crime,
- Recover compromised data,
- Restoration of computer systems,
- Management of business reputation,
- Extortion payments,
- Notifications costs related to notifying customers affected.
Some cyber insurance policies may also offer support with loss of income and business interruption.
The third-party coverage will include damages and settlement costs of a cyber event. These typically result from claims made against you and your business. This could include a privacy investigation raised by a regulator or government agencies.
Who Needs Cyber Insurance Cover?
If your business uses, stores or distributes data you should consider cyber insurance. Whether this data belongs to a business or is sensitive customer data, it may be vulnerable to a data breach or cyber incident.
Small businesses, large corporations, healthcare providers and more; all businesses can benefit from cyber insurance.
How Much Do Cyber Insurance Policies Cost?
Cyber Insurance cost will depend on various factors. This will include the business’s annual revenue, the industry in which it works, the data held by the business, any prior breaches, and the current level of cyber security.
For example, a company that works within healthcare and finance may have more cyber risks than a builder’s merchant.
Getting a quote is the best way to understand how much a cyber insurance policy costs.
What Are Common Cyber Threats and Crimes?
Unfortunately, no matter how tech-savvy you are, cyber incidents still occur. It takes one moment for malicious software to access your computer systems and sensitive data.
Common cyber threats and crimes to be aware of include:
Malware
Malware is malicious software that installs itself onto your computer system. This can occur in the form of phishing scams and exploited software vulnerabilities. Once malware is installed on your computer, attackers can spy on business activities and view and steal personally identifiable information.
A Ransomware Attack
Ransomware attacks your computer system and then encrypts the data stored on it. Attackers will then demand ransom payments in exchange for this data. This is where a data recovery plan can be so important.
Hacking
Hacking is related to the partial or complete takeover of a computer system. This is typically done to access data such as client data.
How Can A Business Improve On Cyber Security?
Insurance is only one part of the toolkit to protect businesses against the risks of cyber incidents.
You must identify gaps and put into place strong cyber security. This can be done in the form of an audit by using an approved assessment tool.
Make Sure That Your Business Is Protected.
Get a cyber insurance quote today by getting in touch with our team here at Wentworth Alexander Insurance Brokers. Our team will provide you with the advice you need on selecting a cyber insurance policy and ensuring that you are covered in the event of a cyber incident.
