Cyber risk is commonly defined as exposure to harm or loss resulting from breaches of or attacks on information systems, or the potential of loss or harm related to technical infrastructure or the use of technology within an organization.
What are Cyber Risks and why should you be covered?
Cyber risk is commonly defined as exposure to harm or loss resulting from breaches of or attacks on information systems, or the potential of loss or harm related to technical infrastructure or the use of technology within an organization. For many companies that are working with digital devices Cyber risk has become one of the biggest hazards in the last years.
There have been a lot of Cyber Attacks to international big companies like Sony but attacks on smaller companies have also been spreading, causing big amounts of financial damage to thousands of companies worldwide. Because of contractual requirements companies usually have to be liable for these costs. For forward-thinking digital companies I should be obvious to have a comprehensive coverage to avoid the increasing risk from the Internet.
What does cyber insurance do and why is a normal insurance is not enough?
The cyber insurance policies from our partners are designed to mitigate your cyber risks as much as possible. In a case of a cyber related security breach or similar event the insurance refunds the exposures involved with the recovery depending on the coverage contract.
Typical expenses are for example:
- Investigation (what occurred and how to repair it)
- Business losses (network downtime, data recovery)
- Lawsuits (release of intellectual property, legal settlement)
In general, standard insurance policies are not enough for companies that are using computer systems in their business. Often they do not cover many risks associated with the digital world. For example, property insurance plans only cover tangible property, which data is not. Another example is standard crime insurance that covers employees and stolen money but not stolen third party data like intellectual property.