In hindsight, we can say that the global pandemic proved to us that the threat of cyber crime is only getting greater. It brought the realization that we need a better understanding of the entire insurance framework in cyber security while insurers implement effective risk mitigation strategies to prevent damage and financial loss.
Every company online is subjected to cyber attempts regardless of its size or main line of work. Dealing with the compromised security connectivity and human vulnerabilities of the employees has presented a major challenge for all industries operating remotely from home. This highlighted the need for effective cyber insurance packages that make do with the risks, costs, and prevention approaches against breach and damage.
What is cyber insurance?
Cyber insurance understands the risks of crime online and responds with policies that give companies coverage for incidents such as data breaches, network outrage, and financial fraud. There are many vulnerabilities that need to be considered in an industry-specific underwriting process, which explains the risks and gives a full cover against likely incidents.
The field of cyber insurance is expanding, requiring more rigorous security controls and responsive insurance policies that cover the threats from damage and theft.
What are the most common cyber crimes?
Social engineering has become prevalent in different forms and severity levels. These types of attacks work by tricking the users into sharing sensitive information by deceiving the looks of real websites and filling out forms. Malware attacks have also been on the rise with 358% since the beginning of the pandemic, exploiting the vulnerabilities of local networks that are a lot more susceptible to breaches and theft. It uses malicious software that breaks the firewall of the network and the device by getting incorporated in links, fraudulent ads, and pages. Ransomware is becoming more prevalent as well, making the dangers of cybercrime many and varied. The vulnerabilities of remote workstations are greater today than ever before, which makes the scope of cyber crime threats bigger and more complex to understand. This underlines the importance of cyber insurance and coverages packages that prevent misfortunate incidents from happening while guaranteeing mitigation of financial loss.
What does it cover?
Cyber insurance packages should take into account the specific needs of the business and their day-to-day activities which pose a risk to their security. They should be customized to meet the coverage requirements regarding third-party damage and personal damage a company may experience in its lifetime.
Personal Damage Cyber Insurance
This is a cover package that compensates for the costs of data recovery after an incident as well as the whole system reconstruction following the cyber crime. With this insurance bundle, you get an estimate for the costs in an event of an incident that disrupts the IT systems for a given amount of time. It will also guarantee protection and mitigation of personal damage in this period. This cover will give you a detailed cost declaration that understands the specifics of liability, reporting procedures, and notification of the affected parties.
If your business is subjected to cyber crime, you are likely to experience financial loss and damage to the integrity of your data. This cover is what protects you against the damage of justified claims as it offers you full compensation in case of such misfortunate cyber incidents. Unjustified claims are also covered by this insurance package and you receive a defense that prevents further damage or loss. Businesses from different industries such as Finance, Healthcare and BioPharma have rigorous compliance with GDPR standards they need to follow, which often results in violation and third-party damage. This insurance cover also considers this aspect of cyber security, which many other insurers miss to include.
If you become exposed to a cyber threat, you need immediate assistance! This means 24/7 monitoring and prevention to mitigate the damage and forensics analysis by IT experts that specialize in damage limitation and gathering evidence from the incident. In this cover, you get legal services that help the business fulfill all the information obligations concerned with cyber crime. Crisis communication is also ensured to keep the damage contained and reduce the impact of the loss within the company.
If your business needs to stay protected against cyber crime, we have you all covered! We can give you a quote today and keep your business secure 24/7. Request a consultation from us or check our Cyber Insurance page for more information.