Cyber Insurance Quote
What is Cyber Insurance and how can it benefit my organisation?
Cyber insurance is necessary because traditional insurance policies were not designed to handle 21st Century threats. Many standard first party insurance policies such as property and traditional crime were designed to deal with threats to a company’s physical assets, their buildings, machinery, office equipment and tangible money only. There has historically been little to no protection offered under these policies for loss, theft of or damage to data, systems and electronic funds. However, most businesses now have a much greater reliance on their digital assets than they do on their physical ones, which makes a new kind of policy essential.
More than 50% of UK Small to Medium sized businesses have reported being a victim of some sort of cyberattack and the increasing frequency is being matched by increasingly high levels of severity. It is important that businesses that are conscious of IT security and take steps to protect themselves from threats, but no one can ever be 100% secure. Cyber threats are rapidly evolving and there are many ways in which attackers can access networks. The vast majority of cyber events tend to cause financial loss to the insured themselves as opposed to third parties they deal with, examples of claims are:
Theft of Data:
Data is valuable and if something has value it is worth stealing. Identity theft has reached record levels in the UK and in order to commit identity theft, criminals need data, Seemingly innocuous information such as names and addresses stored on a computer network can be worth more money than you think.
Damage to Digital Assets:
In order to operate, businesses now have an incredibly high dependency on their systems, and criminals know that. By either damaging or threatening to damage a firm’s digital assets, attackers know that they can extort money from their victims who may prefer to pay a ransom rather than seeing their business grind to a halt. And even after paying up, the victim is often left with systems that are unusable and costly to fix.
In some cases, there may be no financial incentive for the attacker at all. In the same way that criminal damage to property doesn’t have a financial value, damage to digital assets doesn’t need to either. Claims for theft of funds are actually very easy and quick to quantity but for the theft of data claims, the financial impact can vary depending on the nature of the data compromised and how much of it was stolen. The costliest part of a cyber event is often responding to the incident. For example, if an attack has managed to compromise a company’s computer network, the IT specialists are going to be needed to stop the attack, protect against further immediate threats and work out what has been stolen. There is a financial cost associated with limiting reputational damage, notifying clients or customers whose data has been stolen and offering identity theft protection solutions if necessary.
Here at Riviera Insurance, we are experts in Cyber Insurance. We search the market saving you time and money. Our experienced team of insurance specialists recognise that each individual’s requirements are different.