What does cyber liability insurance cover and why do you need it? The need to have cyber insurance is becoming paramount for Irish SME’s.
SMEs are also more exposed to attacks as they won’t normally have the same level of IT protection as a large scale company. So here I’ll explain what exactly cyber liability insurance covers.
- That cyber insurance is only necessary for large companies who may face a cyber attack: This is entirely false and built on the belief that cyber insurance is just protection against malicious attacks. All businesses that rely on computer systems (which today is practically all businesses) are at risk.
What does Cyber Liability Insurance Cover?
- Data Breaches: If valuable data is accidentally deleted, corrupted or sensitive information sent to the wrong person, this would usually be covered in a cyber liability policy. Most cyber breaches are internal, not external.
- Cyber Scams: If you are the victim of a cyber scam, such as a fake email claiming to be from a bank or other authoritative and surrender your bank details or other data.
- System Damage and Rectification Costs: Repairing and restoring your corrupted data or programmes. Includes cost of extra staff if necessary. Includes the cost of IT consultants in recovering the data or applications and bringing your computer system back to position it was prior to the breach.
- Business Interruption: Reimbursement for financial loss caused as a direct result of the cyber event.
- Court Attendance Costs: If you had to go to a hearing with say Central bank or Data Protection Commissioner – it would pay you your daily costs subject to limits and reasonableness.
- Consequential Reputational Harm: If there is ‘bad press’ around your hack you may suffer reputational harm that has a knock on effect for your business even after the system is fixed. (Could suffer reputation harm for a further 12 months possibly)
This list is not exhaustive and a cyber liability policy can cover a range of other costs associated with a cyber event. A cyber insurance policy acts as a extra security to all of you systems and data in the event that the worst happens. It can help you recover to where you were before the cyber event took place.
Get Cyber Insurance
To learn more about cyber liability insurance, visit our website Burkeins.ie and talk to a member of our staff on our chat-box, by email or give us a call.
To read more of our cyber blogs click HERE.