Cyber Security & Data Protection Insurance

What is Cyber Security Insurance for Businesses?

Cyber Security Insurance (also known as Cyber Liability Insurance, Cyber Insurance or Data Breach Insurance) is a specialty insurance product that provides coverage for internal & external cyber security and internet-based risks relating to information technology infrastructure and activities.

Cyber security policies may include first-party coverage against losses such as cyberattacks, data breaches, data destruction, extortion, theft, hacking, downtimes, and denial of service attacks; liability coverage indemnifying companies for losses to others caused (for example, by errors and omissions, failure to safeguard data, or defamation); and other benefits including regular security-audit, post-incident public relations and investigative expenses.

How Confident are You of Your Current Capabilities & Security Measures of Your Business and Website?

With the changes in recent years and a growing reliance on data technology, the increase in remote working and digital transformation has greatly expanded the attack surface. Many threat reports show that ransomware attackers and hackers exploit the Remote Desktop Protocol exposed to the internet, one of the most popular methods of intrusion.

This allows them to gain a foothold within the victim’s environment and is reported in around 50% of successful attacks. It is imperative to secure your business from such attacks and meet today’s challenging security and access requirements.

How to Safeguard Your Business with Cyber Security Insurance

It is now a matter of “when”, not “if” – as cyber threats develop and change, insurance products are increasingly being purchased alongside existing IT cyber security services. Prevention is better than cure, and businesses are encouraged to find adequate cover for their properties to greatly reduce cyber risk and ensure minimal disruption to their networks.

In addition to improving security, cyber insurance is beneficial in the event of a large-scale security breach. Insurance coverage provides a smooth funding mechanism for recovery from major losses, helping businesses return to business as usual.

Protect your business assets from increasingly complex cyber risks. Be armed with cyber preparedness and assurance with the right comprehensive Cyber Security Insurance portfolio.

Types of Cyberattacks

1. Network Failure or Damage: The complete or partial failure of a component or components in a network because of malfunction or natural or human-caused disasters. Temporary period where a system network is unusable or significantly affected due to power outage or sabotage.
2. Network Attack: Attempts to gain unauthorized access to an organization’s network, with the objective of stealing data or perform other malicious activity.
3. Malware and Malicious Scripts or Codes: Harmful computer programming scripts designed to create or exploit system vulnerabilities. This code is designed by a threat actor to cause unwanted changes, damage, or ongoing access to computer systems.
4. Viruses and Worms: Malicious programs that self-replicate on computers or via computer networks without the user being aware; each subsequent copy of such malicious programs is also able to self-replicate.
5. Ransomware/Cyber Extortion: A type of malware from cryptovirology that threatens to publish the victim’s personal data or perpetually block access to it unless a ransom is paid.
6. Phishing: A type of social engineering where an attacker sends a fraudulent message designed to trick a person into revealing sensitive information to the attacker or to deploy malicious software on the victim’s infrastructure like ransomware.
7. Spamming: Unsolicited messages sent to a large number of recipients or posted in a large number of places.
8. DDoS Attacks: Distributed Denial-of-Service: a cybercrime in which the attacker floods a server with internet traffic to prevent users from accessing connected online services and sites.
9. Hacking: The gaining of unauthorized access to data in a system, website or computer.
10. Webjacking/Brand Exploitation: Attackers take the whole site, or the traffic meant for it by gaining administrator access through fraudulent means and tampering with the Domain Name System (DNS) to bring users to a different or criminal site.
11. Insider Threats: A security risk that originates from within the targeted organization. It typically involves a current or former employee or business associate, who has private information concerning the organization’s security practices, data and computer systems.
12. Cryptojacking: A type of cybercrime where a criminal secretly uses a victim’s computing power to generate cryptocurrency.

Types of Cyber Security Insurance

1. Network Security: Insurance for loss derived from a cyber or hacking event.
2. Credit Monitoring Costs: Payment incurred for a credit monitoring service to comply with data breach law.
3. Forensic Investigation: Covers the legal, technical, or forensic services necessary to assess whether a cyber attack has occurred, to assess the impact of an attack, and to stop an attack.
4. Business Interruption: Covers loss of income and related costs where a policyholder is unable to conduct business due to a cyber event or data loss.
5. Extortion: Provides coverage for the costs associated with the investigation of threats to commit cyber attacks against the policyholder’s systems and for payments to parties who threaten to obtain and disclose sensitive information.
6. Reputation Damage: Provides payment incurred for a public relations and crisis consultant to avert or mitigate any damage to the policyholder’s brand or operations.
7. Computer Data Loss and Restoration: Covers physical damage to, or loss of use of, computer-related assets, including the costs of retrieving and restoring data, hardware, software, or other information destroyed or damaged as the result of a cyber attack.
8. Data Restoration: Covers expenses related with the restoration or recreation of data that were lost due to a security or system failure.

What to Look for in a Cyber Insurance Policy

Firstly, understand your risk tolerance, evaluate your business, and decide which systems require protection for smooth business operations. Make an informed decision on the revenue-tied systems in your business. Similarly, all insurance has a yearly payment and deductible that must be met. Review the price of the premium and policy cover to ensure it will cover damages in the event of a cyber attack or breach.

Read all terms and conditions as not all policies will offer the same types of cyber security coverage. Your business may only need a specific set of coverage so find the policy that matches your business goals and needs best.

What Can Cyber Insurance Cover?

A one-size-fits-all policy is rarely the best fit for most businesses. Beyond the basic insuring agreements, there are other available coverage additions to provide better coverage, especially for new businesses and situations that are not yet well understood. Most cyber policies will contain some combination of the following coverage elements in flexible, simple, or broad plans.

Risk and Crisis Management:

24/7 support access and responsive guidance provided to the policyholder

Business Interruption Losses:

Payments made on behalf of the policyholder (loss of income, expenses incurred, human error)

System Recovery:

Costs related to recovery and additional business interruption mitigation.

Data Loss/Breach, Loss of Digital Assets and Restoration:

Recovery and decontamination after attacks or losses.

Worldwide Cover:

Policy coverage over worldwide territory and jurisdiction.

Cyber Crime and Extortion:

Covers direct financial loss from various fraud events and cybercrime.

Privacy and Network Security Liability:

Liability following network failure or data/security/privacy breach.

Online Digital Media Liability:

Damages and defence costs incurred in connection with a breach of intellectual property, or negligence in connection with electronic content.

Loss Prevention:

Prevention services to help reduce the likelihood of an incident.

First Party Cover:

Paid to the insured: Data Breach Notification costs, civil penalty or fines, public relations costs, cyber extortion cost, Payment Card Industry Data Security Standard breach, and fees and expenses incurred by a Loss Adjustor.

Third Party Liability:

Pays on behalf of the insured – claims for compensation made to 3rd parties for the failure to protect their information held by the insured.

Emergency Costs:

Including defence and loss mitigation costs

How Can We Help?

At Allegiance, we pride ourselves as a specialist in the field of General Insurance. We ask the right questions to identify your business’s risks accurately, ensuring that your insurance program can be structured to provide comprehensive coverage to ensure business sustainability in an increasingly uncertain environment.

As your dedicated insurance partner, we consider all risk exposures at various stages of your business process so that you can grow your business with confidence and peace of mind.

No matter the size, each business is more complex than it seems, and so are its needs. Therefore, our deep understanding is why we can give your business just the right protection every step of the way.

Contact Us!

Cyber Security Insurance FAQs

Disclaimer: The above is for informational purposes only, subject to errors and omissions. It is not intended to be an offer or solicitation of insurance products.

For further details, kindly contact us.