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Friday, September 20, 2019

Does my business need cyber insurance?

Some of the things you should consider when deciding whether to buy cyber insurance

Unlike other types of business insurance such as employee liability insurance, there is no legal requirement to have cyber insurance (yet). However, more and more businesses, from startups to multinational corporations, see it as a vital part of their commercial strategy in an increasingly digital world.

If you’re considering whether your business needs cyber insurance, there are some key questions to ask yourself:

Do you hold sensitive data?

If your business suffers a cyber breach, it is possible that hackers or criminals might leak data that you have onto the web. 

Whether this is personal data of your clients or employees or trade secrets of your business partners, if these were to leak onto the web, you are at risk of the affected parties making a claim against you. Damages and associated legal costs could be substantial.

With a Bewica cyber insurance policy, these 3rd party claims would be covered, whilst also covering the losses that you yourself incurred from such a breach.

Do you have the IT expertise to deal with a cyber attack?

If your business experiences a cyber attack, the impact on your IT systems and other IT services can be hugely damaging. You may well need cyber experts to investigate the cause and impact, to fix the problem and to implement measures to prevent future attacks.

Of course, you could hire an expert. However, day rates for cyber experts are high, such as £2,000 per day or even more. And how do you find a vetted, qualified expert in a crisis situation when time is of the essence?

With a Bewica policy, we provide all our customers with a 24/7 hotline they can call if they experience a cyber attack. Our incident managers will then work with you to understand the problem and assign industry leading experts and specialists where needed to get you back up and running quickly. 

Could your business afford to be disrupted?

Cyber attacks can vary hugely in the damage they cause and much of this depends on the business they are attacking.

For example, if a manufacturing business is affected by a ransomware attack, it could mean that the data their production systems and employees rely on is inaccessible to them. If this were to shut down production, even for just a day, the knock-on effects of this interruption on profits could be significant. This loss could be further worsened by any direct costs incurred from the attack such as ransom payments and data restoration. 

Although not every business is as much at risk as manufacturers, it is worth considering whether cyber disruption is something that your business could afford.

Our cyber insurance covers business interruption. It pays for your loss in profits as well as your increased costs of working in qualifying claims. The aim is to get your business back into the same place it would have been in without the incident. 

These questions are by no way an extensive list. If you have any questions please contact us and we will be delighted to provide you with the information you need to make an informed decision.  

If you are interested in getting cyber insurance for your business, click here to get a quote in as little as 2 minutes. 

Douglas Hazell
Marketing manager