Every business in today’s business environment is connected to the internet in one way or another. This connection allows us to conduct business with various software programs, communicate with customers, vendors, and financial institutions, and store sensitive information in the cloud. This connection is a blessing and a curse.
The risk of cyber liability and data protection has never been greater. Business owners know this all too well by the daily reports of various organizations being hacked by sophisticated criminals who lurk in the background working to steal sensitive information.
It’s not about who, it’s about when. Knowing a data breach is likely, your next move should be to transfer the risk to an insurance company with a cyber insurance policy.
A comprehensive cyber liability and data protection policy will provide the financial cover you need to deal with a data breach that results in the loss of sensitive information. There are also cyber attacks that can hold your data hostage until you pay a significant ransom known as Ransomware. This is a virus that affects your computer and encrypts the information on your hard drive. Your only recourse is to pay the ransom to get the key to unencrypt the information.
What is covered in your cyber insurance policy?
Claims from a third party – this cover provides financial protection for your liability to a third party if you are found liable for failing to keep sensitive data secure. This cover is available to pay for third party compensation, investigative costs, defence costs and fines or penalties by the authorities where you operate.
First Party Cover – This cover will reimburse your business for the costs of responding to a direct breach. These costs are a result of forensic requirements, public relations costs to repair your reputation, and reimbursement for ransom payments to hackers.
Business interruption – Most hack attacks result in business interruption. Your business losses that result from a data breach, as well as any additional expenses, are reimbursed by the insurer so you can return to business as usual following an attack.
If you are in business, and you are connected to the internet at any time, your business is at risk It is not about if you are attacked, it is about when you are attacked. Hackers do not discriminate and no business is immune. You should consider transferring this risk with a cyber insurance policy to protect your business if the worst thing happens.
Speak to your Trusted Union insurance adviser about your cyber insurance and data protection risks to get the information you need to make a smart and informed decision.