What is Cyber Insurance?
A Cyber Insurance policy provides coverages for third-party (cyber liability) and first-party (cyber expense) costs. Cyber Incidents for the first time, cyber incidents join Business Interruption at the top of risks facing global businesses, according to a survey conducted by Allianz Global Corporate & Specialty (AGCS). Also identified by 37 percent of respondents as one of the three top risks.
Why do you need Cyber Insurance?
Cyber remains the #2 risk concern among businesses overall. Cyber data breaches can result in cumulative first party costs such as cyber extortion expenses, crisis management and privacy notification expenses, forensic investigation expenses, government fines and penalties. Third party costs can include legal costs and loss of reputation expenses. Federal or state laws may mandate that your company take (and bear the expense of) certain measures in the event of a security breach. The more people from whom your company collects personal information, the broader your exposure and the more you need insurance protection.
What are the biggest Cyber concerns and what you should be doing about them?
The three biggest cyber-related concerns continue to be Security breach, Unauthorized access to financial accounts and a system glitch. Emerging cyber concerns include; Hacking into systems used for business operations, cyber extortion and Having the resources to recover from a cyber event. Furthermore, 52% of business consider it inevitable that they will become a cyber victim.
91% are confident their company has implemented best practices to avoid/mitigate a cyber event, yet most have not taken some basic steps; 55% have not completed a cyber risk assessment for their business, 62% have not written a business continuity plan, 63% have not assessed the cyber security of vendors with access to their data. And finally, 50% of businesses do not purchase cyber insurance.