What is Cyber Insurance?
Cyber protection insurance is a relatively new form of cover. It’s designed to help protect your business from the financial impact of computer hacking or a data breach.
Who should consider it?
If your business has a website or electronic records, you’re vulnerable to cyber hackers. In fact, its likely that your business will suffer a cyber attack at some stage.
A cyber attack could cost your business more than money. It could also threaten your intellectual property and put customers’ personal information at risk – which could damage your reputation.
What can it cover?
Cyber insurance policies vary in the benefits they provide. At Balance we can help you find the most suitable product that meets the needs of your business. To give you an idea, here’s the type of cover that your policy may include:
First Party Losses (You)
- Business Interruption. Covers financial loss you may suffer as a direct result of a cyber attack.
- Cyber extortion. Covering the costs of a cyber attack, such as hiring negotiation experts, covering extortion demands and prevention of future threats.
- Electronic data replacement: The costs of recovering or replacing your records and other business data.
- Security and privacy liability. Damages to your reputation resulting from data breaches, such as loss of third party data held on your system.
- Defence Costs: Funding of the legal costs of defending claims.
- Regulatory breach liability. Covering legal expenses and the costs of fines arising from investigation by a government regulator.
- Electronic media liability. The costs of copyright infringement, defamation claims and misuse of certain types of intellectual property online.
- Crisis Management expenses. Provides cover for the costs of managing a crisis caused by cyber hackers.
- Notification and monitoring expenses. The costs of notifying customers of a security breach, and monitoring their credit card details to prevent further attacks.
What usually isn’t covered?
Exclusions and the excess you need to pay can vary greatly depending on your insurer. Policies generally won’t include cover for:
- Damage to computer hardware (normally covered by a Material Damage policy)
- Criminal actions committed by you or your business
- A cyber attack based on facts of which you were aware
- Criminals using the internet to steal money from you
As with all insurance policies, the devil is in the detail……. so please do read the wording and schedules issued by your insurers. At Balance Advisors we are always here to help you navigate and review these policies so you have a good understanding of what your covered for. We are here to help!