Cyber incidents occur on a daily basis. Technological development and the explosive growth of web-connected devices creates many possibilities, but also brings with it increasing risks, regardless of a company’s size or location.
What are cyber-attacks?
Cyber-attacks are illegal attempts to access to organisations’ data or to disrupt their operations for criminal, espionage, politics or simply for mischief. Millions of attacks are launched at firms every day, some actually succeed in breaching these companies’ defences and wreak havoc.
An increasingly popular form of attack uses emails that appear to be from a known teammate, to trick people into installing malicious software – it’s an easy mistake that can lead to your business being locked down, losing money and held to ransom.
A growing number of breaches come from your employees (often disgruntled) with insider knowledge.
At Howden, we take your business’s risks into consideration and help you determine the cyber insurance policy best suited for your needs.
What kind of damages can result from a cyber incidents?
- Business interruption, e.g. when the company’s systems are targeted by a denial-of-service attack
- Rebuilding of the company’s electronic infrastructure, new devices
- Cost of file recovery or ransomware removal
- Third-party damages, e.g. when a client’s business secrets or other sensitive information are leaked over the internet
- Loss of funds to cyber criminals, such as in the event of extortion
- Additional communication and PR expenses
- Reputational harm due to data leaks, business interruption, etc.
- Notification and investigation costs, legal expenses, fines
Cyber incidents are rarely confined to only the impacted company’s rebuilding of electronic infrastructure, recovery of files, or loss of extorted funds to cyber-criminals. Although these alone can cause expenses to skyrocket, interruptions in a business’s operations or in the supply chain due to cyber incidents often cause the greatest economic damages of all. In the networked economy brought about by modern technology, the threat of damages caused to a third party is also inevitable.
What does Cyber insurance cover?
The standout benefits of cyber insurance are access to highly experienced experts to nullify the threat as quickly as possible and help mitigate disastrous consequences.
- Incident support line (24/7 telephone service) assists in getting technical assistance on site without delay, allowing operations to resume as quickly as possible.
- IT security and forensic expenses, crisis communication expenses, administrative and legal expenses, expenses incurred from compromised personal data, other additional expenses.
- Expenses incurred from system repair and damage mitigation
- Damages caused by business interruption and lost revenue
- Liability damages and loss adjustment expenses
- Legally mandated penalty coverage
- Loss adjustment and ransom expenses due to data extortion
Why should I acquire Cyber insurance?
Cyber insurance differs from most traditional insurance products. Not only does the insurance premium cover the appropriate compensation in the event of damages, cyber insurance also ensures that your organisation is not crippled when the damage is first detected.
The main priorities are to identify the source of damage, prevent the damage from spreading, lighten the impacts, and facilitate your business’s return to normal operations.
24/7 incident support service, included with the cyber insurance policy, helps your company return to an operational state as quickly as possible.
Let an experienced insurance broker help you find the cover you need
Cyber insurance means Howden is right by your side, before during and after your incident.
With the help of our specialist brokers, you save time and effort navigating the market for a suitable cyber insurance policy. Our cyber insurance experts review the risks in your business as well as your current insurance coverage and assist in determining the cyber insurance plan best suited for your needs.
Thanks to our strong market position both domestically and internationally, we can negotiate the best possible solutions on the insurance market for you.