Cyber Risks

John Knowlden, Director, KTIB Ltd

Any business holding electronic data whether it's on a mobile device, computer, server or online faces a risk if the data is interfered with by a hacker, stolen by an employee or accidentally lost.

This risk could result in expensive costs to:

  • Rectify the breach
  • Notify affected customers that their data may have fallen into the wrong hands
  • Rebuild your network to fix the breach and resolve any e-viruses
  • Repair your reputation
  • Defend any legal action arising out of the breach

Prevention is Better Than Cure

Here are a few simple precautions that can reduce the risk of a breach:

  • Understand your IT risks and exposures, by keeping close to your IT department
  • Develop clear IT security policies for staff and ensure these are kept up to date and clearly communicated to all relevant staff
  • Work with your HR and Marketing department to understand any new developments and how these could impact on data security
  • Make cyber risk integral to your business recovery plan – so that you have a plan of action should a major breach occur

In addition a Cyber insurance policy can also provide the following protection for financial losses arising from any data security breaches:

Third party actions

  • Disclosure - Unauthorised release of personal records
  • Content Intellectual cyber property infringements
  • Reputation -Privacy breaches, defamation when disseminating information
  • Conduit - Damage to a third party computer system caused by hacker/attacks on or access to your own computer system
  • Impaired Access - Where customer is impaired from using your computer system due to hackers/attack

​Your own expenses

  • Privacy Notification - The costs incurred notifying your customers / persons who have had their data hacked or wrongfully accessed – even when not required by law
  • Reward - To help induce an arrest and conviction following a cyber-attack
  • E-Business Interruption -  Loss of business income and recovery expenses following a cyber-attack on your own system
  • E-Threat - Ransom payments met in response to a range of threats relating to your own computer system or data
  • E-Vandalism - Reproducing damaged computer data
  • Crisis Management - Managing the impact and costs of an insured event from third parties

A Cyber policy will meet these costs even if the loss was caused by an outsource data-handling firm.
 

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