WHAT IS CYBER INSURANCE?
Cyber insurance is cover designed to protect your business from threats in the digital world that we now live in. Data breaches or malicious cyber hacks on work computer systems are some of the issues companies now face when dealing with cyber breaches.
A business is responsible for its own cyber security, but in the event of a cyber-attack, having the right insurance will mean you aren’t alone. Cyber cover can provide crucial support to help maintain the continuity of your business.
WHO NEEDS CYBER INSURANCE?
If your business uses, sends or stores electronic data, you may benefit from cyber insurance. Cyber insurance can help with the cost of data recovery. All data, whether it belongs to the business or is sensitive customer information is vulnerable to cyber-attacks and data breaches.
Cyber insurance helps offer financial support if the worst happens.
WHAT ARE COMMON CYBERCRIMES?
Here are a few common cybercrimes to be aware of:
- HACKING– This is the partial or complete acquisition of a computer system or certain functions within it. Its main aim is to access important data.
- MALWARE – Malicious software can install itself in your systems via phishing scams and targeting software vulnerabilities. When it’s installed, the attacker can spy on online activities and steal private data.
- RANSOMEWARE – This is a form of malware that attacks your computer system and encrypts data. The attacker will then demand a ransom payment in exchange for the return of the data. It’s important to formulate a data recovery plan as a precaution and maintain at least one regular backup of your data.
WHAT DOES CYBER INSURANCE COVER?
In the event of a breach, illegal threat, cyber-attack or security failure, some 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.
Some cyber insurance policies also offer support with income loss if your business needs to close temporarily because of a cyber-attack.
Cyber insurance can also cover crime costs, this cover goes beyond cybercrime. If your business faces fraud by an employee, cyber insurance may help to pick up related costs.