“We don’t need that. It’ll never happen to us. We’ve got great controls!’’
Many businesses are unaware that they are inadequately insured in respect of a data breach.
Cyber insurance can play an essential part in helping a company with the costs that occur when dealing with a data breach. These costs can include:
Examples of the ways that cyber insurance can provide protection for your business are:
- Lost data
The responsibility for data remains with the company regardless of where it is stored. You may be held liable if personally identifiable information is exposed, irrespective of whether it is stored on your property, in an offsite data warehouse or in a third-party technology company/cloud. A cyber policy can cover breach notifications and remediation expenses if a data breach does occur.
The extent of a data breach can be determined by computer forensics teams, who can also clarify whether private customer information has been compromised. The expense of such investigations by computer forensics experts is recoverable under a cyber policy. A cyber policy can also provide cover during the period of business restoration for potential business loss and extra expenses that may be incurred.
- Lost devices
Modern working methods means that laptops and other mobile devices are often taken out of workplace premises, potentially exposing private/confidential data, to theft or compromise. Whilst such thefts or losses are not completely unavoidable, an organisation can take steps to protect and limit the amount of data on each device, for example by the use of effective passwords and mandating periodic changes. The storage of any private/confidential data on laptops should be avoided where possible, or, if necessary, stored only as encrypted data or accessible through a secure server connection. In the event of a breach occurring, a cyber policy can include network and information security liability cover, which provides protection for failure to prevent the unauthorised access to, or use of, data of a private or confidential nature relating to others.
By Paul Taylor Cert CII – Account Executive