The Need for Cyber Insurance
April 19th, 2022
Cyber crime sounds like something from science fiction. Unfortunately it is a growing reality for many businesses and you need to be aware of the risk and take action to protect yourself.
Cyber crime affects businesses of all sizes and types. Although some attacks are targeted, many are random in nature, compromising customer or financial data. An attack on your website or systems can force you to cease trading while issues are resolved, with serious implications for the viability of your business.
What is cyber insurance?
Cyber insurance is a form of cover that can help protect your business in the event of a malicious attack on your computer systems and data. Also known as cyber liability insurance, this type of policy can help minimise disruption to your organisation, covering the financial costs involved in handling and recovering from a cyber-attack or hacking threat.
It is important that you take responsibility for putting practices in place to control cyber security within your organisation. While security measures can help minimise the risk of a cyber-attack from happening in the first place, this type of insurance can provide financial protection in the event of a data breach. By purchasing cyber insurance, you’ll have added peace of mind that if the worst were to happen, you could receive financial support to help keep your business afloat.*
What kind of claims does cyber insurance protect against?
Cyber insurance can protect your business against a wide range of different scenarios. Some examples include:
A spreadsheet which contains some of your clients’ personal information, including payment details, is stolen in a targeted attack against your business. Your cyber insurance policy provides financial cover associated with informing your customers of the hack, and it also covers any legal costs and damages you are required to pay to other parties involved.
A hacker threatens to encrypt the hard drive of a laptop used within your business unless you meet a ransom deadline. Your cyber policy means you are covered for the cost of meeting and paying the ransom demand.
As part of a targeted attack, there is an outage on your company website, causing the loss of data and meaning clients cannot access your services. Having cyber insurance in place means you are covered for the cost of restoring or reinstating this data to get your website back up and running, and you’ll be covered for loss of net profits too.
* Cyber insurance protection is subject to policy limits.
For more information about Cyber Insurance to protect your business, call David Upshall Insurance on 01305 268883 or email david@davidupshall.co.uk
