Why your business needs cyber insurance

30th January 2019 | Posted in Cyber Security


Cyber insurance claims are soaring as data breaches and cyber-attacks rapidly increase as reported by the BBC.

These breaches can incur revenue loss, business interruption and reputational damage, which in some extreme cases is irreparable. Businesses are now recognising the importance of cyber insurance policies to cover themselves in the event of a cyber-attack.


What is cyber insurance?

Cyber insurance (also known as cyber risk insurance or cyber liability insurance) is designed to support and protect your business if it experiences a data breach or is the subject of an attack by a malicious hacker that affects its computer systems. It provides comprehensive cover, reputation protection and a trusted partner in the event of a claim.

 

What does cyber insurance cover?

Cyber insurance mitigates losses incurred from damage or loss of information from company IT systems and networks. Policies generally include significant assistance and management of the cyber incident, which is critical when a business is presented with potential reputational damage or regulatory enforcement.

Typical cyber insurance coverage includes:

  • Loss or damage to IT systems
  • Interrupted business
  • Liability and loss of third-party data
  • Data breach costs
  • Privacy protection
  • Copyright infringement
  • Media liability
  • Digital financial theft
  • Cyber extortion (cyber-criminals threatening to damage or release data if ransom isn’t paid)

 

Why your business needs it

Cyber insurance is growing in popularity. It helps protect your business in the event of a data breach, which the result of could run costs into the thousands. Cyber-attacks on the SMB market are growing in intensity and may struggle to survive after a data breach or virus attack.

 


The Government Cyber Security Report states that “companies are recommended to stop viewing cyber largely as an IT issue and focus on it as a key commercial risk affecting all parts of its operations”.


 

Cyber insurance issues

The issue with Cyber insurance is that you must meet a certain level of protection before your cover is valid. This is the same as motor insurance requiring that you have a driving license and a valid MOT. The level of your protection is not always checked prior to taking out insurance and your insurance broker may not even be fully aware of the technical criteria of the required cover.

 

Reinforcing your policy with a gap analysis

With the increase in cyber-attacks, the market for cyber insurance has grown rapidly. Businesses are now taking the relevant precautions to secure their intellectual property. However, the downside to this is that the majority of cyber insurance policies are complicated and can overlook policy coverage gaps unless comprehensively reviewed.

This is where a cyber security Gap Analysis comes into play. It is essentially an IT security audit of your business and exposes potential weaknesses and security threats that could be exploited. This allows you to then apply remediation measures and reduce the possibility of data breaches, reputational damage, regulatory fines and financial loss.

A Gap Analysis can also serve in reducing the cost of an insurance premium. Premiums are tailored to specific business factors such as industry, services, data risks, network security, privacy policies and annual revenue. These are taken into consideration when a Gap Analysis is performed, ensuring maximum vulnerability assessment.

 

How can Cyfor Secure assist?

Cyfor Secure understand the complexities of protecting a business’s data and are experienced in conducting gap analyses, providing a comprehensive cyber security overview. Our IT security specialists can analyse your cyber insurance policy to ensure they firstly cover you to a sufficient standard and secondly make sure you comply with the requirements of cover. If you don’t have a policy in place, we can collaborate with you to introduce the required level of protection and then recommend the appropriate insurance cover.

 

Contact our team for more information
contact@cyforsecure.co.uk
0330 133 1250

 


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contact@cyforsecure.co.uk

0330 133 1250

Cyfor Secure
PO Box 266
Manchester
M24 0BY

contact@cyforsecure.co.uk

0330 133 1250

Cyfor Secure
PO Box 266
Manchester
M24 0BY