Cyber risk insurance, also known as cyber protection insurance or cyber liability insurance, is a policy that supports organisations if there is a cyber breach or incident within their business.
Cyber risk insurance protects enterprises from the debilitating consequences of an attack, including dealing with data loss, managing company reputation and clarifying customer communication.
The latest cyber security reports show that there has been an increase of 18% in cyber attacks year on year, with 82% of malicious file attacks delivered by email.
In this article, we explore what cyber risk insurance covers and who can benefit from this protection.
Contents
- What is cyber risk and how could it impact my business?
- What typical areas does cyber risk insurance cover?
- Who should consider cyber risk insurance and why?
- Cover your business with cyber risk insurance from GasanMamo.
What is cyber risk and how could it impact my business?
Cyber risks have proliferated over recent years and now arrive from many different directions for businesses. Essentially any type of digital breach can be considered a cyber risk, ranging from a malicious file sent over email to a hack of internal systems or theft of confidential data.
A dependency on technology is common today for most organisations. It is this use of digital and cloud solutions that exposes businesses to the risk of a cyber incident. Using remote networks is now standard, but this way of working may increase the potential for cyber risk.
A cyber risk can impact your business in a number of ways, such as:
- Loss of finance: a restriction on normal business activity will mean that financial opportunities are reduced or even confined in the aftermath of a cyber risk or event.
- Disruption of operations: systems will have to be shut down to investigate a cyber risk, therefore inhibiting an enterprise’s ability to continue daily routines and reach goals.
- Negative influence on reputation: when a business has to reduce its interaction with clients or customers, there will be an awareness of a potential vulnerability which can influence trust levels.
- Regulatory penalties: data breaches can result in regulatory or level penalties which can be detrimental to businesses.
Find out more information about cyber security in our article: Cyber attacks and business risk: is insurance worth it?
What typical areas does cyber risk insurance cover?
Each cyber risk insurance policy will have its own specific coverage areas and it is recommended that you discuss these with your policy provider to ensure the plan protects your business in the right ways.
Here are three typical areas that some cyber risk insurance policies, such as the one you can find with GasanMamo, cover:
- Data breaches
Your cyber risk insurance should offer the capability to investigate any data breach and the work taken to restore lost data or recover digital assets.
- Business interruption
Interruptions to business can be costly. It’s essential that your cyber risk insurance covers a direct loss of profit from a cyber event and also compensates for fixed operating expenses or the impact of increased costs of working that are incurred as a result of a cyber incident.
- Liability
Your policy should protect your enterprise in terms of liability, such as legal defence or claims costs and liability arising from data breaches, malware transmission or system misuse.
Who should consider cyber risk insurance and why?
The reality is that every business which operates digitally and stores or works with client or customer data requires cyber risk insurance. It makes good sense to gain the protection and prepare for any eventuality, rather than dealing with the damaging repercussions after a cyber attack.
A few years ago, many organisations believed that only larger or international companies needed cyber risk insurance as smaller businesses were unlikely to be targeted.
With AI now a significant aspect in cyber crime, any size of enterprise using any system can face cyber risk or even a cyber incident. Safeguarding your business and customers with protective cyber risk insurance is not only sensible, but it also gives you access to an expert team who will proactively support you.
This is true with GasanMamo, as we supply 24/7 local support through CyberSift and legal or regulatory guidance when you need it with our cyber risk insurance policy.
Discover more in our article: How cyber attack insurers protect businesses.
Cover your business with cyber risk insurance from GasanMamo
Whether you’re looking for cyber risk insurance or more extensive business insurance, GasanMamo has the perfect policy just for you. Our expert team can guide you through your insurance policy needs and help you decide the ideal protection for your organisation.
Gain peace of mind and reassurance that your business is protected. Discover the best insurance for your business by getting in touch for a chat with our friendly team.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
