Businesses need a line of defence when it comes to Cyber Attacks.
These are strategies to help protect your business and reduce your Cyber insurance premium.
These include up-to-date anti-virus and anti-spam tools and system backups that are regularly tested. Rigid protocols around passwords are also essential. Staff training to ensure employees understand what a cyber attack or threat is and how to prevent one is also essential.
In a recent portfolio analysis conducted by cyber insurance specialist underwriting agency Emergence Insurance, showed FY19 cyber claims frequency was up 29 percent compared with FY18.
Professional, scientific or technical service industries accounted for 20 percent of claims; healthcare and social assistance 14 percent; and financial and insurance services 12 percent.
Cyber policies can provide cover in the event of a financial loss as a result of a cyber attack, which are common. Attacks of this nature include ransomware attacks, in which a criminal locks a business out of its IT system in exchange for a ransom. Other cyber threats include malware attacks.
This is when a criminal goes into a business’ IT system to store malicious software, for instance a tool to steal customer data or infect the business with a virus. Some sources suggest there are more than 350,000 malware attacks a day.
Cyber policies cover businesses for the cost of responding to a cyber event such as a denial of service attack that results in a firm, or its staff and clients, not being able to access its IT systems.
Cover pays for a technician to resolve the issue, as well as any economic loss the business suffers as a result of the attack, for instance lost sales. It’s also important to understand the elements of an attack for which cyber policies do not provide cover.
Cyber policies can provide protection for a financial loss, but they don’t usually provide cover for a physical loss, If someone hacks into a car’s system and causes it to crash, the event would normally be covered under traditional vehicle insurance, rather than by a cyber policy.”