Cyber Insurance – The Ultimate Guide to Protecting Your Business Online
Figures from Cybersecurity Ventures show that the total global economic loss due to cyber crime doubled from $3 trillion in 2015 to around $6 trillion in 2021.
With this figure predicted to rise to $10 trillion by 2025, our latest blog looks at how you can protect your business from the threat of cyber-crime with comprehensive insurance policies that provide cover against threats lurking online, from cyber extortion & malware attacks to insider & privilege misuse and physical theft & loss.
WHAT’S THE DAMAGE?
If your business is hit by a cybercrime attack the financial losses incurred could be devastating. These losses could include:
- Damage and destruction of data
- Stolen money or intellectual property
- Theft of personal and financial data
- Embezzlement or fraud
Not every successful attack is immediately known to or comprehensively understood, which means the actual costs could be even higher. And while these losses alone could be crippling, even after an attack is remedied the cost to your business would not stop there.
Consider the inevitable post-attack disruption to the normal course of your business, which could include forensic investigation, restoration and deletion of hacked data and systems, and even ongoing reputational harm.
REAL LIFE, REAL RISKS
To understand the scale of the problem, take a look at these real life examples of recent ransomware attacks, published by insurance giants Munich Re:
Their figures also show that cybercriminals obtained ransoms averaging $118,000 per successful attack, compared to $88,000 in 2020.
The increase in cybercrime has other, more sinister implications. Munich Re goes on to say that by sharing tools and expertise, cybercriminals are enabling other perpetrators (with relatively little knowledge of their own) to carry out ransomware attacks, to finance other established ransomware groups.
According to Cybersecurity Ventures, a ransomware attack occurred every 11 seconds in 2021
PROTECTING AGAINST THREATS
TThe challenges for companies faced with the threat of cybercrime are complex, including managing hardware and software components from multiple providers and adequately assessing risks from multiple sources.
Renowned cybersecurity experts Gartner has estimated that by 2025, 60% of companies will consider cybersecurity as a key component of their IT procurement process.
Realistically, however, this will not be easy for all businesses to fully implement, which is where cyber insurance comes in.
Specialist cyber insurance policies can provide broad coverage against a wide range of damages caused by a systems security incident, including:
- Regulatory fines which could be imposed by a government body due to an information privacy breach.
- Business interruption, loss of income and increased cost of working.
- Costs to restore, re-collect or replace data lost, stolen or corrupted due to a security incident.
- E-Financial loss – unrecoverable loss of money as a direct result of a system security incident by a third party.
- Physical damage – costs to replace or repair direct physical damage of tangible property as a direct result of a system security incident.
- Privacy liability – defence and settlement of liability claims arising from compromised information.
- Network security liability – defence and settlement of liability claims resulting from a system security incident.
- Media liability – defence and settlement of liability claims resulting from disseminated content.
Some policies also provide cover for costs related to the response to a system’s security incident, including:
- Obtaining professional (legal, public relations and IT forensics) advice.
- Performing incident triage and forensic investigations, and guidance on measures to prevent reoccurrence.
- Crisis communications and public relations costs to manage a reputational crisis.
- Remediation services such as credit and identity theft monitoring to protect affected parties.
Genesis Insurance Brokers work with the country’s leading insurers, and with over 50 years worth of combined industry experience, we can help you to identify areas of risk, and advise on the best potential cover for your needs.
Get in touch with your broker today if you have any questions.