I went into my local pub last week and discovered all draft beers were off, and only a small amount of wine was in stock. I had never seen this before and unfortunately for this local business customers were walking out and going elsewhere.
I asked what was going on and they informed me that their supplier had been hit by a cyber-attack. The attack destroyed their database and customer information was removed which then resulted in orders being lost and missed.
Cyber-attacks are real and are happening a lot, they impact not only the company hit by the attack but many others in their chain, such as my local pub!
Protecting your business with correct cyber cover is crucial, but what is cyber insurance?
Cyber insurance (also referred to as cyber risk or cyber liability insurance) is a form of cover designed to protect your business from things such as data breaches or malicious cyber hacks on work computer systems.
A business is responsible for its own cyber security, but having the right insurance will mean you aren’t alone in the event of a cyber-attack. Cyber liability cover will provide crucial support to help your business stay afloat if the worst were to happen.
What does cyber insurance cover?
In the event of a cyber-attack, most cyber insurance policies will cover the first-party and third-party financial and reputational costs if data or electronic systems have been lost, damaged, stolen or corrupted.
For the business involved (the first-party) the cover includes the cost of the following:
- Investigating a cybercrime
- Recovering data lost in a security breach
- The restoration of computer systems
- Loss of income incurred by a business shutdown
- Reputation management
- Extortion payments demanded by hackers
- Notification costs - in the case you are required to notify third-parties affected
- Third-party coverages (resulting from claims against you) include damages and settlements and the cost of legally defending yourself against claims of a GDPR breach.
Could your business benefit from cyber insurance?
If your business uses, sends or stores electronic data, you may benefit from cyber insurance. Whether it belongs to the business or is sensitive customer information, that data is vulnerable to cyber-attacks and data breaches; cyber insurance can help with the cost of recovery.
Protecting your business with correct cyber cover is crucial, don't cut corners as the impact can be catastrophic. Get in touch today, and our team can help you protect your business from threats in the digital age.