Cyber Insurance – What is it and why do you need it?

The internet – love it or hate it, we need it, particularly in the business world. And whether we like to admit it or not, well, it can be a dangerous environment to rely and depend on. How do we rely and depend on the internet? With business finances, online banking, purchases and more – we hand over our personal data without giving it a second thought. What’s the cost?

The cost is security. Unfortunately, security isn’t getting easier and our digital landscape is rife with phishing, all kinds of malware including ransomware and plenty more nasty hacks and potential attacks.

Cyber insurance can help.

In our latest blog, we explain what it is and why you may need it.

What is Cyber Insurance?

Cyber insurance is a sub-category of general insurance that covers businesses and individuals against internet-based liability and risks. It also provides business owners peace of mind and protection against cyber-attacks, such as computer hacking, ransomware and data theft.

There are generally two levels of cyber liability coverage: First-party and third-party. First-party coverage covers direct losses to an organization or individual, whereas third-party coverage extends to claims and legal action taken by customers or partners.

Whilst Cyber insurance can’t protect your business from Cybercrime, it can provide you with the finances you need to hire the IT professionals required to fix the issue, help you pick up the pieces and get you back on your feet. They can help prevent future attacks from occurring too.

What can Cyber Insurance cover?

Depending on the situation, you may be up for the cost of ransoms or IT solutions to unlock and repair your systems. You could also be liable for the costs of reporting the breach, legal claims, and remediating any losses suffered by your customers or clients.

Cyber insurance can cover:

  • Loss of revenue due to interrupted business
  • Hiring negotiators and paying ransom
  • Recovering or replacing your records or data
  • Liability and loss of third-party data
  • Defence of legal claims
  • Investigation by a government regulator
  • Copyright infringement
  • Misuse of intellectual property online
  • Crisis management and monitoring
  • Prevention of further attacks

One key fact to remember is that cyber insurance is not a replacement for cybersecurity. Therefore, it’s still important to speak to an IT professional about what other solutions could be put into place to help.

Are you ready to help protect your business from Cybercrime?  Contact Grace Insurance in Landsdale, north of Perth, for assistance today.