Computer attacks are becoming more frequent and no company, no matter how small, is free from suffering one. Cyber insurance helps prevent the impact of these threats and mitigate their effects. We tell you more about him.
Cyber risk insurance protects companies from the consequences of cyber attacks, mitigating exposure and financially compensating for system recovery after a security breach.
In addition, more and more cyber policies include the incorporation of preventive measures to avoid attacks or minimize their impact, such as training for employees or the implementation of anti-malware software.
What are the Cyber Risk Insurance Coverages?
The main cyber risk insurance coverages are:
- Damage. Loss, theft or damage to computer equipment, information or intellectual property, expenses for repair and restoration of deleted data, restoration costs of the access control system.
- business interruption. Covers lost profits and increased operating expenses when there has been a cyber attack.
- Liability. It offers protection against damages caused to third parties as a result of a cyber attack.
- Cyber crimes. Such as phishing scams, phishing, phone hacking, identity theft, wire fraud, and cyber extortion.
- Crisis management, reaction and communication expenses. Coverage for data hosted in the cloud, reputational damage, fees for external consultants, expenses for contingency plans with providers.
- Legal defense. Expenses related to legal, judicial or mediation proceedings, such as defense fees and legal assistance.
Additionally, some policies offer services such as the personalized adaptation of the company to the Organic Law on Data Protection, measures to prevent cyberattacks, the transfer of replacement equipment or access to the telephone service line or web support. .
Occupational Risks in the Technology Sector
The main risks of a technological nature to which companies are subjected have to do with data loss or leaks, virus transmission, information hijacking, destruction of computer equipment, system crashes, and breach of confidentiality and privacy protection regulations. .
Who is this type of Cyber Insurance for?
70% of attacks are suffered by SMEs, exceeding 66,800 euros as the average cost to restore the company’s activity after a cyberattack.
Hence, it is an insurance designed for all types of companies that handle data, regardless of their size and sector, since they are all exposed to these threats in the daily use of technologies, when sharing data with clients and suppliers, use electronic means of payment, etc.
Requirements to take out this Insurance
In order to contract cyber insurance, insurers demand a series of minimum requirements, which guarantee the solidity of client systems:
- Have an updated antivirus.
- Regularly make backup copies of the information they handle.
- Have personnel trained in IT security and cybersecurity (own or external) who install the appropriate cybernetic measures.
- Having fully adapted to current data protection regulations.
Advantages of Cyber Insurance
Cyber insurance makes it possible to safeguard business information from possible attacks that could delete it, modify it, make it inaccessible, or even spread it without consent.
All this harms the normal development of the activity and exposes the company to great economic and reputational losses, as well as lawsuits from third parties (customers, employees, suppliers…) that may have been affected.
These policies, in short, provide peace of mind in daily work, facilitating preventive measures and protecting from the consequences of the accident.
Final Words
The price of cyber risk insurance will depend on the type of company, the sector in which it operates, the computer equipment it has and the risks to which it is exposed (depending on the type of data it handles), aspects that will determine the coverage specific to the policy.
In any case, insurance can be contracted on the market for less than 200 euros, although this figure may increase due to the complexity of the policy that is contracted, ranging from the most basic.
Which covers Civil Liability and personal damage, to more sophisticated. that include software to reduce the probability of future security breaches, erasure of the digital footprint or inquiries about cyber risks without any incident having occurred, among other additional services.