Skeptical about cyber insurance and its role in your risk management plan? You’re not alone – until you get attacked. When the very survival of your business is under threat, cyber insurance gives you someone to turn to.
There are two types of business... those who’ve been hacked and those that will be. (The FBI, 2012)
What is a cyber-attack?
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.
What does cyber insurance cover?
Cyber insurance means Howden is right by your side, before during and after your incident.
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.
Cyber insurance gives you rapid access to experts who will:
1. identify the cause
2. contain the breach from spreading and doing more damage
3. deal with the fallout (including mitigating ongoing risks)
4. restore your organisation back to business as usual.
Typical costs resulting from a cyber attack
As well as your emergency incident response and the costs of reinstalling hardware and software, cyber liabilities policies offer cover for:
- costs of notifying clients
- monitoring your customers’ stolen credit card and ID details
- business interruption and alternative costs of working
- costs of investigation
- costs of extortion
- legal defence fees and damages.
If the FBI and the Pentagon can be hacked, no-one is safe
If you have insurance you can expect a fast expert response from
1. Forensic IT analysts to nullify the threat quickly
Using genuine specialists who know the modus operandi of the criminals and the nuanced behaviour of the latest threats companies can get to resolve the breach faster.
Forensic specialists deal with these threats every day – they hunt down the breach and restore security, to stop further business interruption and even prevent further regulatory investigation. Having these experts work alongside your team is a must-have for any breach incident.
2. Specialist lawyers to advise on incident handling and regulatory fallout
Get prompt advice from commercial lawyers with extensive experience of handling cyber claims, to help navigate a complex compliance situation and even fight your case if it comes to that.
3. Public relations experts with deep experience in crisis communications
Mandatory notification and disgruntled customers can leak information of your breach as potential news to media. If media responses are handled without the right Public Relations, your reputation could be damaged further which could have repercussions to your existing customers and stakeholders.
Maybe it’s not for you, but having diverse experts on hand can save you time when you are racing to contain your losses before they get completely out of hand.
Breaches are a stressful situation for even the best in-house talent. Expert help is advantageous all around - and you don’t want to be paying through the nose for specialists when your cyber crisis is already in full swing.