Cyber liability risks

Business insurance

What are your cyber liability risks? What cyber liability insurance covers & Steps to reduce cyber liability risks

?In recent years, there have been an increasing number of costly computer hacking attacks against large companies, such as Target and Home Depot and in recent months Bangladeshi central bank and few Pakistani banks. But smaller companies face computer liability risks as well. Virtually all businesses use information technology (IT) in some way-to communicate via email, to provide information or services through a website, to store and use customer data and more. Your business can be held liable if certain data is compromised, not only by hacking attacks but even if a smartphone is lost or a laptop computer is stolen.

The risks of cyber liability are evolving rapidly, with new risks emerging as technology advances and new regulations are put in place. Insurance experts now consider the risk of cyber liability losses to exceed the risk of fraud or theft. In this tumultuous environment, your business can take several steps to limit risks, including purchasing cyber liability insurance.

What are your cyber liability risks

If your computer systems are hacked or customer, employee or partner data is otherwise lost, stolen or compromised, the costs of response and remediation can be significant. Your business may be exposed to the following costs:

?????Liability - You may You be liable for costs incurred by customers and other third parties as a result of a cyberattack or other IT-related incident.

?????System recovery-Repairing or replacing computer systems or lost data can result in significant costs. In addition, your company may not be able to remain operational while your system is down, resulting in further losses.

?????Notification expenses-In several states, if your business stores customer data, you're required to notify customers if a data breach has occurred or is even just suspected. This can be quite costly, especially if you have a large number of customers.

?????Regulatory fines – In several countries the regulations require businesses and organizations to protect consumer data. If a data breach results from your business's failure to meet compliance requirements, you may incur substantial fines.

?????Class action lawsuits - Large-scale data breaches have led to class action lawsuits filed on behalf of customers whose data and privacy were compromised.

What cyber liability insurance covers

Some standard business insurance policies, such as a Business Owners Policy (BOP), may provide coverage for certain types of cyber incidents. For instance, if you lose electronic data as a result of a computer virus or hardware failure, your insurance?may pay recovery?or replacement costs. To extend coverage for a fuller range of cyber liability risks, you will need to purchase a stand-alone cyber liability policy, customized for your business. This type of policy can cover several types of risk, including:

?????Loss or corruption of data.

?????Business interruption.

?????Multiple types of liability.

?????Identity theft.

?????Cyber extortion

?????Reputation recovery

Steps to reduce cyber liability risks

Because computing technology changes rapidly, there is no absolutely sure-fire way to protect digital data and computer systems. In addition, technologies deemed to be highly secure can later develop vulnerabilities or be found to be vulnerable all along. For instance, websites worldwide used an encryption technology called OpenSSL for many years before the technology was discovered to be vulnerable to cyberattack. You may be able to limit your cyber liability risk by:

?????Installing, maintaining and updating security software and hardware.

?????Contracting with an IT security services vendor.

?????Using cloud computing services.

?????Developing, following and publicly posting a data privacy policy.

?????Regularly backing up data at a secure offsite location.

CYBER RISKS BY INDUSTRY

EFT’s cyber team has considerable experience in collaborating with clients in a range of industries to identify their key cyber risks before addressing how they can be covered in the insurance market.

·?????Aerospace

·?????Financial Institutions

·?????Telecommunication

·?????Technology

·?????Construction

·?????Transport & Logistics

·?????Healthcare providers

·?????Energy & Mining

·?????Legal services

CYBER INSURANCE

Cyber insurance is offered in a modular format and provides both first & third party coverage.

CYBER INSURANCE

1st Party Cover

CRISIS MANAGEMENT COSTS

Practical support in the event of a data breach (electronic or otherwise) including forensic investigations, legal advice, notifying customers or regulators, and offering support such as credit monitoring to affected customers.

CYBER EXTORTION

?A policy will protect you if a hacker tries to hold your business to ransom by covering the ransom you have paid, as well as the services of a consultancy firm to help manage the situation.

CYBER BUSINESS INTERRUPTION

Compensation for loss of income, including where caused by damage to your reputation, if a hacker targets your systems and prevents your business from earning revenue.

DATA RESTORATION

?Reimbursement of the costs of repair, restoration or replacement if a hacker causes damage to your websites, programs or electronic data.

CYBER INSURANCE

3rd Party Cover

SECURITY & PRIVACY LIABILITY

Coverage for defence costs and damages for third party claims arising out of a failure or violation of the security of a computer system or network that results in unauthorised access, unauthorised used, denial of service attack or receipt or transmission of a malicious code.?

Coverage for claims alleging a failure to protect confidential information or failure to disclose any Security or Privacy event, any unintentional failure to comply with a Company’s privacy policy, or any violation of a federal, state, foreign or local privacy statute are all included under these coverage grants.?

Coverage for Payment Card Industry Data Security Standard fines, penalties and / or assessments as well.MULTIMEDIA LIABILITY

Protection if you mistakenly infringe someone’s copyright, for example by using a picture online without permission, or inadvertently libel a third-party in an email or other electronic communication.

REGULATORY LIABILITY AND FINES

Cover for costs to respond to governmental investigation arising out of a privacy event. Coverage for fines and penalties to the extent allowed by law.?

GET IN TOUCH

S.Mahmood | Chief Executive Officer| [email protected]

EFT EksportCredit Re | Corporate Solutions

50 Grosvenor Hill

Mayfair,?London, W1K 3QT

UK