How does Cyber Insurance work? Could it protect my business?
In light of the most recent worldwide attacks like PETYA and WanaCry you are probably aware that cyber security attacks happen to businesses of all sizes. You might be investigating if your business is at risk. Maybe you have wondered if Cyber Insurance could be right for you. Let us help you with this daunting task.
If an attack happens, more than a financial loss could be the outcome. In cases like the recent malware attack WanaCry, the money that victims were asked to pay as ransom was not the real damage. What did cost money, trust and shareholder value, was that the affected businesses came to a still stand, in case of global shipping line MAERSK it had a domino effect that affected customers and suppliers alike.
Some of our thoughts as Special Risk Experts on Cyber Insurance:
Cyber insurance cannot reverse the incident, so be diligent with your data back up and have your incident response plans tested and ready.
Get your whole team on board with ongoing cyber awareness measurements. Your staff can be targeted and involuntary install malware or provide system access to hackers.
Insurance can help financially and protect your Cash flow.
Included in the insurance is a variety of expert advice on how to manage a cyber risk breach (Legal, PR and IT experts).
You will get forensic advise on how to deal with the aftermath of an incident.
Your Cash Flow is protected even though your business process has been interrupted.
Customers, clients and shareholders are informed.
IT experts help to restore data, ensure that the threat has been completely extinguished.
We recommend Cyber Insurance as crucial for your business, if you don't have the Cash flow to overcome the Business interruption period.
Your systems might not be operational for days, clients need to be informed and in the worst case scenario, you will have to pay to monitor their credit history for the next years. Especially if the credit history of your clients has to be monitored due to a breach of privacy data.
Cyber Insurance is NOT THE SILVER BULLET to solve all cyber risk issues. It has to be part of a holistic and ongoing cyber risk management. Support starts from the Top. Long gone and outdated are the times where Boards can lean back and refer to Cybersecurity as an IT Problem. Most importantly, you want to be proactive and mitigate the imminent and ongoing risk to a bearable minimum.
Cyber Insurance can be part of the solution.
As the matter is complex, it is recommend to start with a proper Cyber Risk Health Check. The insurance cover provided can differ vastly, but we are here to guide you through it.