CYBER LIABILITY
CYBER LIABILITY
When “WannaCry” and “Petya” wreaked havoc on IT systems, the Indian industry began to recognize the severity of the potential threat. With 300,000 computers compromised and large companies like Jawaharlal Nehru Port Trust, Renault, and Mondelez being crippled, creating a credible defense and protection has become a priority for all companies. The widespread disruption caused by these ransomware attacks underscored the vulnerabilities in existing cybersecurity measures and highlighted the urgent need for comprehensive cyber protection strategies.
Hacking can lead to significant business losses, regulatory actions, and substantial expenditures to mitigate the damage and protect sensitive information if compromised. The financial and reputational impact of cyberattacks can be devastating, often resulting in prolonged operational downtimes, loss of customer trust, and legal consequences. In this context, having robust cybersecurity measures and appropriate insurance coverage is essential for business continuity and risk management.
Affordable Business Insuranceca Consultants can help you buy the right Cyber Policy tailored to your specific needs. Cyber insurance, apart from covering privacy and internet breaches, includes a comprehensive cover for various other aspects. This typically involves coverage for business interruption losses due to cyber incidents, which compensates for income lost during the downtime caused by a cyberattack. It also covers the costs of forensic investigations to determine the extent of the breach and identify the source of the attack.
Moreover, cyber insurance policies often include coverage for legal expenses arising from privacy violations and data breaches, including defense costs and settlements. This is particularly important given the stringent data protection regulations in place in many jurisdictions, which can impose hefty fines for non-compliance. Additionally, these policies may cover public relations expenses to manage and mitigate the reputational damage following a cyber incident, ensuring that the company's image is restored as quickly as possible.
Another critical component of cyber insurance is the coverage for extortion-related costs, such as those incurred during ransomware attacks where attackers demand payment to release encrypted data or stop a threat. This coverage can provide the necessary funds to respond to such extortion demands, potentially minimizing the operational impact of such attacks.
Furthermore, cyber policies can offer coverage for costs associated with notifying affected individuals in the event of a data breach, as well as credit monitoring services for those whose personal information has been compromised. This not only helps in complying with regulatory requirements but also demonstrates a commitment to protecting customer interests, which is crucial for maintaining trust and loyalty.
Affordable Business Insuranceca Consultants bring their expertise to help you navigate the complexities of cyber insurance, ensuring that you have a comprehensive policy that addresses all potential risks. Their knowledge of the industry and the specific threats faced by different sectors enables them to provide tailored solutions that enhance your cybersecurity posture and provide peace of mind. By partnering with Affordable Business Insuranceca, companies can ensure they are well-prepared to face the evolving landscape of cyber threats, with a robust insurance policy that covers all critical aspects of cyber risk management.
-
Notification Costs
US, UK and European countries always had strict privacy laws which require notification to all individuals whose personal data has been violated. The recent GDPR rules further reinforces privacy protection for EU citizens.
-
Forensics and Credit Monitoring
The regulations require companies to identify the extent of the privacy breach to reduce the damage. The policy provides cover for the significant cost of hiring forensic experts and spends required for credit monitoring of affected people.
-
Regulatory Costs
When Privacy violation happen it may not be sufficient to notify the effected individual and prevent misuse of the information. It can lead to regulatory action incurring costs of defence, fines, penalties and other associated expenses.
-
Business Interruption
Most ransomware aim to extort money by disrupting or disabling the use of systems and applications. Cyber covers protect when such disablement leads to business interruption on an extended time frame affecting business profits.
-
Cyber Extortion
In certain situations cyber criminals can create an upper hand in a disruption attack. When extortion threat becomes realistic and unavoidable, the insurance cover will provide the money paid under duress to cyber criminals.
-
Company and Individual Reputation
A breach of privacy claim can have a severe dent on a company reputation and ability to do business. Cyber policies provide coverage to hire experts to restore a company or individual reputation and reduce the bad publicity.