The Way To Protect Your Business Against The Modern Crime Of The 21st Century.
We have seen in recent years, months and days that there is a growing threat of cyber-attacks. Unquestionably, it has become the modern crime of the 21st century and it is an exposure that no business can escape, large or small.
Most companies purchase ‘traditional’ general liability insurance policies to protect themselves from any claims arising from the wrongful or negligent acts of their employees. So, why would your company not need cyber insurance?
It can be a really valuable protection, although a cyber-attack may not destroy a business itself operationally, it will create potential to cause harm to the reputation of the company.
Cyber insurance, started mainly focused on data breaches but as we become more dependent on technology, insurers are providing a more holistic type of cover.
The cyber insurance market has had a significant growth in the last years and so has the number of insurers offering this type of product, our cyber insurance team works on being able to access bespoke cyber insurance policies but the coverage under each policy does of course vary per provider. In general terms the cover provided may include:
Data breach/ Incident response
it will pick up all of the costs incurred by the business which involve the responding to a cyber incident.
System damage
cover for costs as a result of damage to a businesses’ computer system.
Cyber extortion
cover for payments made as a result of extortion incurred in response to a threat.
System business interruption
aims to reimburse the loss of income as a result of a cyber related event.
Regulatory fine
cover for costs and penalties that a regulator may impose as a result of a data breach.
Media liability
cover related to defamation or infringement of intellectual property rights.
Privacy protection
cover for third party claims against breach of personal data.
Types of cyber claims
Cyber-attacks can happen in many ways such as, theft of funds where a hacker will steal money from a company’s bank account damage to digital assets whereby a hacker is able to damage the system which your company works on, resulting in huge business interruption costs and in many cases leaving your business in great reputational prejudice or data breach and privacy crisis management in which the firm’s customers’ personal information is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network.
Protect your business from cyber crime
Cyber insurance should not be seen as a replacement for the cyber security of a business. It is essential for a business to enhance their cybersecurity measures.
At Capurro Insurance, we believe that 2022 should be the year that businesses seriously start to consider on reviewing their cyber risks and explore how a cyber insurance policy can provide innovative cover to protect their businesses against the threats of the digital age.
If you wish to discuss any of the points raised in this article, please contact our Commercial Team.
By Nicolas Palacios Capurro LLB.
Business Development Executive
