Cyber risk insurance: Being prepared for a cyber attack

Business

Cyber crime is today a reality. No matter whether you are a multinational corporation, a mid-sized enterprise, or a small business, your systems and data are vulnerable to online cyber attacks that could lead to loss of valuable assets and compromised data.

What is a cyber attack?

In order to understand cyber risk insurance and its coverage, let us first understand what is a cyber attack? A cyber attack is an assault on either one, or more computers in an organization that maliciously disables them, steals data, or uses a breached computer to enter a network and launch other attacks.

Examples of a cyber attack

Common examples are malware, phishing, ransom ware, and denial of service etc. It could even be unscrupulous selling of your customer information, or their trade secrets on the internet, especially if you are business is related to eCommerce.

Alberta cyber insurance can protect you and your customers from malicious attempts to steal information, upset your business operations and damage your reputation.

How does cyber risk insurance protect your business from cyber attacks?

Thankfully with cyber risk insurance, you can be self-reliant and take pro-active measures to protect your business and your customers from malicious attempts to steal information such as customer details, credit card number, halt your business operations and damage your reputation.

Coverage provided by cyber risk insurance

Cyber risk insurance is not included in Commercial General Liability Insurance policy and has to be purchased separately. The broads risks covered under the policy include:

1. An incidence of extortion to your business from the outside world.

2. Any and all forms of data destruction in one system, or across the entire network.

3. Stealing of pertinent information, data or money by online thieves and hackers.

4. Cyber attack during the course of routine day-to-day operations.

5. Cyber risk insurance provides coverage in case you or your staff makes mistakes that lead to errors and omissions, defamation, or failure to safeguard valuable company data.

6. It also includes expenses that you might incur on expensive investigation, handling public relations, or security audits coverage, and criminal reward funds.

Factors affecting cyber risk insurance

Factors affecting cyber risk insurance are as follows:

– The size of your business
– The annual revenue of your business
– What is your industry type
– Your information and data type
– The volume and number of records and data in your business
– Insurance options selected by you such as deductibles, policy limits, and coverage

How can you lower your cyber risk insurance costs?

There are many ways in which you can lower your cyber risk insurance costs:

– Bundle your insurance with other insurance.
– Adopt measures mitigate risk and lower your chances of getting hit by a cyber attack
– Get competitive quotes from different insurance companies and bargain hard
– Don’t insure over and above what you need.
– Choose a higher deductible.
– If possible, establish a cybercrime plan.
– Review your insurance coverage and see if adjustments need to be made.

Have you obtained cyber risk insurance?

The risk of a cyber attack is continuously growing. Every day there are technology threats of various kinds such as worms, viruses, hackers and spam. No matter how expensive and latest software systems that you might have installed in your organization to protect yourself from a cyber attack, the fact of the matter is that today no business is 100% protected from anti-virus and anti-spam software.

Conclusion:

If you have not taken cyber risk insurance as yet, then this is the best time to start.

Always remember, when a cyber attack happens, nothing would be physically taken, no doors or windows would be broken, no filing cabinets would be broken, no physical files or records would be stolen. Only your systems and data that house your most pertinent information would have been ransacked and it will take you many months and resources to limp back to restore normalcy in your business operations.

Hence, it is advisable to purchase a cyber risk insurance policy today.

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