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CyberRisks

Padlock on computer

We all hear of data breaches and of websites being hacked causing havoc to businesses and consumers alike. One thing is certain, these reports will not go away as hackers continue to outwit the IT experts and sensitive information falls into the wrong hands either through Cyber Crime or by accidental loss.

Here are some examples of Cyber Threats that businesses face:

  • After failing to identify a phishing email a Transport Company suffered uninsured loses of over £240,000 as their bank refused to pay compensation.
    Cover - Reimbursement of the loss
  • Hacker locked ALL the files on a person’s PC. Subsequently they were was forced to pay a ransom demand to prevent the files being destroyed.
    Cover – Ransom negotiation costs or reproduction of record costs.
  • Briefcase was lost holding a USB memory stick holding personal data of customers. Action taken by the authority for the failure to have proper policies in place for the security of personal data.
    Cover - Defence costs, reimbursement of customer notifications costs and credit monitoring costs
  • A printer wrongfully provides credit card information to a third party resulting in unauthorised transactions for its customers.
    Cover - Significant legal defence costs

Cyber Insurance

A Cyber insurance policy can provide the following protection for financial losses arising from data security breaches –

Third Party Actions

Conduit - Damage to a third party computer system caused by hacker / attacks on or access to your own computer system

Content - Intellectual cyber property infringements

Disclosure - Unauthorised release of personal records

Impaired Access - Where customer is impaired from using your computer system due to hackers/attack

Reputation - Privacy breaches, defamation when disseminating information

Your Own Expenses

Crisis Management - Managing the impact and costs of an insured event from third parties

E-Business Interruption - Loss of business income and recovery expenses following a cyber-attack on your own system

E-Threat - Ransom payments met in response to a range of threats relating to your own computer system or data

E-Vandalism - Reproducing damaged computer data

Privacy Notification - The costs incurred notifying your customers / persons who have had their data hacked or wrongfully accessed – even when not required by law

Reward - To help induce an arrest and conviction following a cyber-attack

A Cyber policy will meet these costs even if the loss was caused by an outsource data-handling firm.