It is often said in insurance circles that when it comes to cyber crime there are three kinds of businesses – those that have been attacked, those that have yet to be attacked, and those that have been attacked, but don’t know it!
Cyber crime refers to criminal acts that use computing devices and data that they store and manipulate. This could be as simple as a virus or phishing scam, or as severe as malicious code or a web-based attack that compromises the security of your business. Cyber crime has devastated many businesses financially and can potentially devastate yours without adequate cyber crime insurance cover.
Cyber crime insurance cover is digital protection that is intended to alleviate the danger of a digital related security break by counterbalancing the costs associated with recuperation for businesses and individuals.
Protection starts with an expert assessment of your business’ exposure. The assessment will identify potential weaknesses in your system and help you understand the vulnerability they represent.
What does cyber crime insurance cover?
A good cyber insurance policy from Sydney Insurance Brokers will cover all aspects of cyber crime which your business is exposed to. As well as covering obvious risks associated with loss or misappropriation, this insurance policy can also include:
- Business interruption: covering losses incurred following a breach, as well as while the network is being repaired and restored to use.
- Intellectual property indemnity: covers you against the costs of defending claims by third parties for using multimedia material in breach of a third party’s intellectual property rights.
- Extortion: some policies can cover you for ransom payments deemed necessary to resolve a threat.
- Cost of regulatory intervention: depending on the nature of the breach, a data regulator may investigate, which can result in significant costs for the business. This is an insurable risk.
- Remedial system engineering: data breaches can leave a business network in disarray and the operation of restoring it to health can be costly. A good cyber crime policy must cover these costs.
What does cyber crime insurance typically not cover?
- Willful, intentional, malicious, fraudulent, dishonest or criminal acts committed by the business
- Death, bodily injury or damage to tangible property
- Financial failure
- Upgrading or improving software
- A cyber attack that occurs due to information that the business was aware of before the attack
How much does cyber insurance cost?
For organisations, Cyber crime Insurance cost relies upon explicit needs and chances, as well as the size or spending plan of an organisation. This insurance policy clarifies that organisations must weigh what it would cost them in the occasion they don’t buy an approach.
Nobody is sheltered from cyber crime – neither people, private companies, nor the biggest partnerships. Cyber Insurance can help shield your business from significant costs, business misfortunes, and administrative fines and punishments should an information breach happen.