The regulatory and legislative requirements you need to comply with in the aftermath of a data breach can be mind boggling to even the most prepared businesses.
Expert advice and guidance is therefore essential when making decisions and implementing plans to mitigate the reputational damage, law suits and regulatory investigations arising from a data breach.
The causes of a data breach could be: a disgruntled employee improperly accessing or using client data; the loss or theft of IT hardware; the opening of an email from a bogus sender containing a virus; or a criminal gang that hacks into a business’ IT system to steal sensitive data or alternatively to encrypt it and demand a ransom (cyber extortion).
How could having a Cyber Insurance policy in place protect your business?
- It provides cover for first party and third party loss
- Costs to restore, recreate data or software, loss of net profit, and expenses incurred in order to minimise the loss of net profit arising from a data security breach can be reimbursed.
- It offers access to experts in data breach management to help you:
- gets your firm back up and running quickly
- limits your reputational damage
- mitigates your exposure to regulatory risks
You may have asked yourself, “but aren’t I covered for these things with my other policies?”
The quick answer is no!
General insurance for property, liability and professional indemnity is simply not designed to cover the kinds of emerging risks being faced by modern businesses.
There are significant gaps in cover that exist between a Cyber Insurance policy and other insurances purchased including:
- First party breach response costs – legal, forensic specialist IT, PR, customer notification services, call centre services, customer credit protection services, customer ID and credit monitoring.
- Contractual liability obligations relating to cyber risks, which may be insisted upon by large corporate clients, may not fall within the scope of cover under other liability policies.
- Breaches pertaining to first party employee, trustee, director and partner information.
- Breaches perpetrated by rogue employees.
- Cover for terrorist cyber events.
- Cyber extortion costs and expenses.
- Cover for the restoration of critical software and data.
- Losses due to the interruption of the organisations network and trading platforms.