6 Reasons why you need to get Cyber Insurance for your business.

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By: Sales and Marketing Dept.
June 13, 2020

As we transition to the new normal, some business models have become obsolete. We have seen a massive exodus of businesses transitioning into digital platforms. That includes storing important datas online.

For consumer facing businesses, whether you're a restaurant, a boutique or even a flower shop, eventually you’d be getting your customers private information online. And this is where the risk comes in. According to statistics, 43% of cyber attacks are aimed at SME’s while only 14% are actually protected with an extra layer of security. The same can also be said to the big companies, in 2011 Sony's PlayStation Network was breached by hackers, exposing personally identifiable information (PII) of 77 million PlayStation user accounts. The breach prevented users of PlayStation consoles from accessing the service, an outage that lasted for 23 days. Sony incurred over $171 million in costs related to the breach. Portions of this cost could have been covered by a cyber insurance policy, but Sony did not have one in place.

To add another extra layer of security to your business, It is advisable to get a cyber insurance policy, here’s 10 reasons why:

1. Data Privacy Breach Protection. It safeguards you for a loss resulting from a “suit” first made against you by an impacted individual and for an alleged “privacy breach”.
   

   *note
   A data privacy breach is a confirmed incident in which sensitive, confidential or otherwise protected data has been accessed and/or disclosed in an unauthorized fashion.

2. Security Breach Liability. Similar to the data privacy breach, this also gives you protection for loss resulting from a “suit” first made against you for an alleged “security breach”.

   *note
   A security breach is any incident that results in unauthorized access of data, applications, services, networks and/or devices by bypassing their underlying security mechanisms.

3. Breach Notice Response Service. Having a cyber breach can be stressful for sure, that’s why you need to have the right people know, right away. People affected by a breach need answers and advice.
4. Regulatory Response Expenses. This helps you settle claims expenses required to evaluate or respond to a claim for any state or federal regulatory agency or other government agency.
5. Payment Card Industry (PCI) Fines and Penalties. It is your liability when your business gets hacked, and customer data has been compromised especially, bank account details and card details.

   *note
   The Payment Card Industry has established fines of up to $500,000 per incident for security breaches when merchants are not PCI compliant. In addition, it is required that all individuals whose information is believed to have been compromised must be notified in writing to be on alert for fraudulent charges.

6. Ransomware Support. Get the up to date ransomware support services when your system gets held hostage by ransomware and you receive a ransom demand.

   *note
   Ransomware is a type of malicious software designed to block access to a computer system or computer files until a sum of money is paid. Most ransomware variants encrypt the files on the affected computer, making them inaccessible, and demand a ransom payment to restore access.

Surely, this another layer of security will give you peace of mind and help you prevent lawsuits. With cyber insurance you get all this coverage for one year. And is renewable annually.

Want to know more, speak to a sales officer now.