Cyber Insurance - Worth the paper it's written on?

Cyber Insurance – Worth the paper it’s written on?

Written on July 06, 2017 at 01:06 PM By Emily Gam

We’ve all heard of traditional insurance, but have you heard of cyber insurance?

With the rise of scams and particularly in light of the ransomware WannaCry that swept over the globe in a few hours, it’s becoming increasingly more important to have this side of your business protected.

While some traditional business insurance policies do have an option to include cyber insurance, often it has so many exclusions it won’t actually cover you in the case of a hack.

What is cyber insurance?

Cyber insurance is an insurance policy used to protect your business against internet based risks, most notably cyber attacks and online security breaches.

What does cyber insurance cover?

A good cyber insurance policy will include both first party and third party cover. These can include expenses relating to: crisis management, data recovery, business interruption, data extortion, security and privacy liability, regulatory costs and multimedia liability.

You should also be aware that there is an onus on the business to maintain good cyber security. Just like contents insurance won’t pay out if you leave the door to your house open, you will need to show you have assessed your risks and follow best practices. Having things like a employee education plan and a Disaster Recovery Plan will ensure you get the correct payout.

Do you need cyber insurance?

As we rely on technology more and more in our businesses, we are continually creating vast amounts of data. With more devices than ever and an explosion in sensitive data, it has never been more lucrative to be a hacker.

If your business stores and maintains customer data, collects online payment information or even uses the cloud, then you should seriously consider getting cyber insurance.

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