Even the best prepared firms can struggle to understand the scope of or comply with regulatory and legislative requirements in the aftermath of a data breach.
Expert advice and guidance is 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 gaps in coverage that exist between a Cyber Insurance policy and other insurances purchased include:
- 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.