What is Cyber Insurance?

24/09/2018

Cyber insurance is designed to provide protective cover and support in the event of a data breach or malicious attack on your home or business.

There are many risk factors associated with the use of digital technology and even more if your business operates online. Some of the most common cyber attacks include:

• Phishing attacks
• Malware attacks
• Ransomware attacks
• Password attacks
• Denial-of-service (DoS) attacks
• Man-in-the-middle attack (MitM) attacks
• SQL injection attacks

Falling victim to a cyber attack could result in a loss of income, damage to your reputation and brand trust, as well as loss of data or operational capacity. 

Who needs cyber insurance?

As with any form of insurance, essentially you're betting with the insurance provider that you are likely to experience an attack, and the insurance provider is betting you aren’t! No-one can truly say if your home or business will actually fall victim to cyber crime, but a cyber insurance policy could provide valuable peace of mind and contingency under certain circumstances, such as:

• If you store sensitive data about your customers or store their card details directly (as opposed to relying on external payment gateways that handle the PCI compliance aspect)
• If your business heavily relies upon technology and computer systems to operate
• If you operate an ecommerce website

Important considerations

Whilst cyber insurance may be appropriate for your business, it should not be seen as a way of assuming your computer systems and website don’t need to be robust and resilient in the face of a cyber attack. Whilst cyber crime is becoming increasingly prevalent and sophisticated, there are still many prudent measures you should adopt to minimise your risk. If you find you have concerns about this then you can discuss those concerns either with 360 (as your website specialists), or with your IT support provider (for general computer, security, or software issues) respectively. 

Cyber insurance policies are also offered at varying levels and it’s always important to fully understand both the level of cover you’re paying for and any obligations you have as a policy holder. This will help to position you well in the event of having to make a claim.

Ultimately, whether you decide cyber insurance is relevant or appropriate for your home or business, it’s always a good time to review and improve your security practises and protocols. Your business will be safer for it and you can even use it as a way of building brand trust by communicating your endeavours to your customer to let them know you’re conscientious and take security seriously.

If you’re concerned about cyber security or have any queries relating to the security of your website, please don’t hesitate to contact a member of the team today.