Data Liability - Personal and Corporate Data
With the majority of companies using data storage and sharing such as the 'cloud', it is now even easier for hackers to damage, steal or change your data remotely. Regardless of how data is lost/damaged/stolen, you as a company are liable for data held on your systems or your cloud servers, so if a hacker steals sensitive information and leaks it to the general public, you can still be hit with regulatory action and possible legal action.
Cyber Extortion/Security Threats
The days when extortion meant a man in a balaclava would have to physically take something from you in order to threaten you into paying a ransom are well and truly over. These days a hacker doesn't even need to leave their room to threaten you into paying large sums of money to stop them releasing sensitive information.
Cyber extortion can come in a number of forms, for example, a hacker can threaten to release the names and credit card details of all of your customers unless you pay them, or they can deny you access to files/systems unless you pay the ransom, but one thing is the same across all forms of cyber extortion; it is incredibly difficult to identify the hacker, and due to the anonymity that the internet offers, you only really have the two choices; pay up, or prepare to face the consequences.
Business Interruption after a breach
A security breach doesn't just result in loss of data and potential fines, most people overlook the potential loss in income if your systems are down and you are unable to trade.
Hackers can put a website out of action indefinitely with denial of service attacks (DoS attacks), which is where a hacker will saturate a target server or system with external communication requests, so much so that the system can't respond to the levels of traffic caused and crashes, or responds so slowly that it is essentially unavailable. While the damage done by DoS attacks can be mitigated, your website could still be down for weeks. For companies reliant on income generated from their website, this can be devastating. Not to mention the loss of reputation a company suffers as a result of not being able to offer their regular services for days/weeks.
Crisis management and notification costs
In the event of being hit by a security beach, very few companies would actually know what to do and who to notify and having a one stop shop to take care of setting up credit monitoring services or an identity theft helpline, conducting an independent security audit of your computer systems to identify scope and source of a breach and advising how to notify affected individuals can be priceless, as when hit with a security breach, time is of the essence and by acting quickly you can mitigate the costs and save your companies reputation.
Why do I need Cyber Liability?
- If a virus passes through your system and causes financial loss to a third party.
- You discover that your security systems have been damaged and you are left with the costs of retrieving/restoring your computer system or any other data that may have been damaged or lost
- You are hacked and as a result, your systems are down for a period of time, leaving you unable to work as you normally would. You suffer a reduction in profit during the system outage, and also the reduction in profit due to your loss of reputation following the system outage.
- You discover that money has been taken from your accounts by electronic means.
- You discover that a third party has been fraudulently using your electronic signature to sign for payments and/or contracts which you are now liable for.
- Someone hacks your computer system and denies you access unless you pay them a ransom.
- Someone hacks your computer system and threatens to release sensitive information to the general public unless you pay them a ransom
- You discover that your telephone systems have been hacked and suffer losses as a result.
- You are made aware of fraudulent electronic communications in the form of emails or websites designed to impersonate you or any of your products in order to scam your clients out of their money. If your clients lose money in one of these scams, and you don't reimburse their loss, then you have lost reputation and they will most likely not use your services/buy your products again.
Get a quote, today!
Cyber Liability insurance will become an essential business tool over the next few years, by protecting your business in the event of the above, as well as make your company look more attractive to potential investors and clients, so either go online and get a quote today or complete the proposal form and we will conduct a full broking service on your behalf for a quotation.