Does my business need cyber insurance?

What is cybercrime?

Cybercrime, carried out by cyber criminals, is a threat to any business. This is unauthorised access to, or modification of, data or applications. Including intellectual property theft, software piracy, industrial spying, theft of computer materials, and computer viruses or malware.

Why does my business need cyber insurance?

Cyber Insurance can also be referred to as Cyber Liability or Cyber Risk Insurance. Cyber insurance can protect your business by keeping it on a stable financial footing if a cyber security event occurs.

Your business can be vulnerable to attacks in various areas of day-to-day functions. Internet transactions, technology and social media are essential aspects in the running of your business. These are gateways to cyber threats and attacks.

Attacks by hackers, criminals or employees can cause moderate to severe losses for your organisation, regardless of its size.

Your business should always make decisions on the risks to avoid, accept, control or transfer. Transferring of risks is when cyber insurance takes action and the risk is transferred to the insurance company.

The purpose of cyber insurance is to help a business mitigate exposure by offsetting the costs involved after a cyber-related attack or data breach. It typically covers expenses related to first parties as well as claims by third parties; there is no standard underwriting for policies, but the main benefits are to give first and third party cover which defends against:

• Business Interruption
• Cyber terrorism
• Crime
• Physical Data Loss
• Employee Data loss
• Reputational Harm

And helps with:

• Re-creation if data can be restored
• Legal costs and assistance

Is your business at risk?

"Does my business need cyber insurance?" Here are a few questions for you to consider. If your answer is yes to any of the following, your business could be at risk of attacks:

1. Does your business handle card payments or electronic payments?
2. Do you or your employees use computers?
3. Do you store data?
4. Do you store customer details?

Finding the right cyber insurance policy for you

Using platforms like THEDIRECTORSCHOICE.COM can allow you to compare insurance brokers to find one which specialises in cyber insurance. You should then get quotes from an independent insurance broker, such as SJL Insurance.

Cyber Case Study

A start-up tech company found malware installed on its server. The client was insured and the insurer instructed its IT forensic specialists to investigate how it had been installed and discover the function of the malware.

The client-server contained large amounts of data; the risk was that personal data had been compromised. Given the potential gravity of a breach, a thorough investigation was undertaken and it was confirmed the malware was simply cryptojacking – i.e. making unauthorized use of the client’s computers to mine cryptocurrency, so no data had been released.

Why choose SJL Insurance Services?

Choosing SJL means you have:

• Access to market leading-insurance companies
• Market-leading cyber insurance products
• Highly-trained Insurance executives to talk through the application process, step by step.
• Fair treatment through the process from application to claim

Blog by SJL Insurance

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