As organisations have become increasingly dependent on technology to do business, cyber insurance has developed into one of the most important types of coverage for today's businesses to carry.
Yet, cyber insurance is also one of the least understood types of cover on the market.
This series will help clear up any misunderstandings you might have about cyber insurance and how it can protect your business.
True or false?
If I buy cyber insurance, I don't need to worry about data breaches
False – but it'll certainly help you sleep at night.
Cyber risk is an issue that all businesses, regardless of their size, need to take seriously.
Organisations in every industry, now more than ever, rely on technology to do business. And thanks to the same technology, they are far more susceptible to cyber attacks.
Therefore, a deliberate, methodical and systematic approach is required to protect your business, profits, and reputation from an attack.
And, with legislation now requiring mandatory data breach notification, there is no such thing as an "insignificant" breach anymore.
Many cyber threats tend to exploit unmaintained systems, weak passwords, and poor business processes. Yet these scams continue to work because many businesses don’t take their cyber security seriously enough.
When your cyber insurance claim is paid by the insurer, the claim may involve loss suffered by your business including recovery costs, extortion threats, loss of profit, social engineering fraud, and/or liability payments to third parties including legal defence costs, fines and penalties.
In other words, you will be far better off that you were insured rather than if you were not.
But, failing to adopt good governing principles and policies in your business may adversely also affect:
- Customer relationships and contracts;
- Supplier relationships and contracts;
- Business profits for a long period;
- Resourcing capability and morale;
- The ability to obtain insurance at reasonable terms and conditions, or obtain any insurance;
- The ability enter into or continue certain contracts which oblige you to maintain cyber insurance;
- Your standing with the law.