What is cyber risk insurance?
Cyber risk is the number one risk facing businesses today. The probability of a breach and encryption of systems is in fact higher than that of a fire, a customer default or a claim.
Objective of the insurance
It has become one of the main concerns of management. The frequency of cyber incidents has increased exponentially in recent years and, given the increasing digitisation of business and industry, the scope is devastating.
New variations of malware are emerging every day to threaten corporate systems, and social engineering attacks are becoming increasingly sophisticated.
We therefore recommend investing in protective measures to minimise the likelihood of an incident and transferring the risk to the insurance market by taking out a policy.
How do we work cyber risk insurances?
At O. Brokers we work with our clients in the implementation of the necessary security measures and processes required by insurance companies to provide coverage.
Depending on the activity carried out, the volume of turnover and the geographical dispersion, we advise on coverage, limits and sub-limits to be contracted.
This is constantly evolving, and at renewals we review all policies to ensure that they have the best cover available.
Coverages
- First response service
- Technology containment service
- Legal advice and legal fees
- Service for notifying affected persons and contact centre for resolving queries
- Regulatory notice
- Control and monitoring service for compromised information Communication and reputation consultancy
- Data and system recovery costs
- Loss of own and external service provider's profits
- Cyber-extortion
- Equipment protection
- Liability for digital content
- Civil liability for personal data breaches
- Administrative penalties
- Payments cards industry (PCI) penalties
- Fraudulent use of electronic identity
- Electronic theft of funds
- Online price changes
- Fraud in contracted services
- Identity theft
Crime insurance as a supplement to cyber insurance
As a complement to cyber risk insurance to provide full fraud cover, we recommend taking out crime insurance to cover any loss suffered by the insured company as a direct result of a criminal act. The insured loss may be property, money or securities.
The crime coverage is triggered when there is identity theft, fraudulent manipulation of the company’s systems with a transfer of funds or internal fraud (company employee) causing a loss.
What can happen to trigger cyber risk insurance?
Friday morning at 8 a.m., a company’s employees arrive at the office and all systems are encrypted. On the screens, there is a ransomware warning with an extortion threat.
How does the cyber risk policy work? The first response is activated. A 24×7 service of experts in this type of incident who support you through the steps to follow in order to restore normalcy as soon as possible. Once restored, all other covers are activated and reimbursed.
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