Protect your business from the consequences of cyber-attacks
Cyber-attacks into companies’ IT databases, email phishing scams and website hacks with accompanying ransomware demands are regularly in the news these days.
They can cause untold disruption to the individuals whose personal data is stolen, especially if that data includes bank details and money is taken by the hackers.
But what about the costs to business in lost working hours as well as repairing their IT systems to ensure there are more secure?
A fairly new form of insurance is now available that can help to protect businesses from the consequences. It’s called Cyber Liability Insurance Cover (CLIC for short).
With the introduction of stricter data protection rules (GDPR – General Data Protection Regulations) due in May this year this cover is something businesses would be wise to consider.
Among the cover they may provide for are:
- Data breach and privacy crisis management: Examples include expenses related to the management of an incident, the investigation, the remedial action that needs to be taken, data subject notification, call management, credit checking for data subjects, legal costs and regulatory fines.
- Multimedia/Media liability cover. Third-party damages such as specific defacement of your website and theft of intellectual property.
- Extortion liability cover – in the event of a ransomware demand.
- Network security liability. Third-party damages as a result of denial of access, costs related to data stored with third-party suppliers and costs related to the theft of data from third-party systems.
You will need to find a well-informed specialist broker to advise you as this is still a fairly new form of policy in the insurance market.
Given that all businesses are different, you may only need certain types of cover and it would help to give your broker estimated costs and expenses that are likely to affect your business in the event of a security breach.
Also, it is always wise to check for yourself the small print, exemptions and the details of exactly what cover the policy provides.
In the new age where businesses rely so heavily on their IT systems CLIC is certainly something for businesses to consider.