In these modern times, it is fair to say that most companies rely on computer technology to operate their business; using the internet, computer networks, and email, to name a few. The network and IT department sit at the core of an organisation and without these it could not fully operate.
A vast amount of confidential information is stored on servers within networks which are vulnerable to data breaches. These data range from personal to corporate and encompass financial data and more. If compromised, this can result in catastrophic damage to both an organisation and their clientele. There has been a large increase in the number of criminal organisations and individuals who seek a financial gain from illegally accessing information and this simply cannot be controlled; a vulnerability will always exist and, from an insurance standpoint, this is validation for the industry.
If confidential information is leaked, the onus will be with the owner of the organisation and, therefore, it is important to be protected against such risks. The impact of such data breaches can have huge financial consequences, including costs associated with outside computer forensic analysis professionals, legal costs incurred in managing a breach, compliance assessment, monitoring, restoration, ransomware demand, civil litigation and regulatory enforcement actions.
Cyber & Data insurance is designed to support and protect businesses from evolving e-risks. It provides comprehensive cover for your computer systems and data, whether electronic or non-electronic. This insurance type seeks to cover a wide range of risks to include theft of confidential data, virus corruption, loss of revenue, damage to computer networks, ransomware etc. This is, of course, not an exhaustive list. There are numerous risks that need to be considered to minimise a company’s exposure should there be cyber security breaches.
It is essential that all potential risks are identified to ensure that cover is put in place that is tailored to the company’s specific requirements. In addition to having companies properly train their employees, ensuring that they are up to speed on the importance of updating software patches in a consistent routine, and having backup plans in place, a robust Cyber & Data policy should certainly form part of a company’s risk management strategy