Do you need cyber insurance?
News has a reputation for its negativity. Headlines are dominated by political noise, our planet’s impending doom and, more recently, widespread cyber-attacks, like the global ransomware spread by Wannacry and Petya.
To protect yourself from becoming a victim to such headlines, it may be time to invest in cyber insurance.
Cyber insurance: What is it?
Cyber insurance is specialised insurance designed to help people protect themselves and their businesses against costs linked to digitisation. Insurance policies, such as tech E&O coverage, are already designed to cover providers of tech products and services, but businesses that use this tech as well as provide it should be concerned with cyber insurance.
Cyber insurance is becoming a standard choice or businesses, especially considering nearly half of UK businesses identified at least one cyber security breach or attack within the last 12 months, according to the 2017 Cyber security research report released in April.
In particular, cyber insurance can help companies deal with the fallout of data breaches, which usually take the form of a hacker stealing the personal information of a business’ customers. Cyber insurance can cover some of the costs associated with credit monitoring, fines and identify theft, and can help cover the fallout from ransomware attacks. Businesses may also need coverage if their website or social accounts are defaced or infringed upon.
UK insurance company Hiscox’s cyber insurance policies cover costs and also connect customers to experts who will help minimise damage to businesses after cyber attacks. The company also has a document on its website with definitions for common policy terms, so it’s easy for customers to understand cyber insurance.
Cyber insurance: How much does it typically cost?
The cost of a cyber insurance premium depends on several factors, such as the business’s industry, services, how much data they store (and the type of data), general security and annual gross revenue. Cyber Data Risk Managers, a cyber insurance broker working in the US and Australia, lists its customers’ premium costs anonymously, along with their revenue, limit and industry.
For example, a healthcare clinic with a $400,000 (£309,000) revenue and $1 million (£773,400) limit pays a $1,202 (£930) premium. An online pharmacy’s premium costs increases by 200%, though, with a $8 million (£6.2 million) revenue and $1 million (£773,400) limit.
To figure out how much your business’s premium would be, most cyber insurance brokers offer a space to plug in your information and get a quote right on their websites, like Cyber Data Risk Managers does.