Cyber risks are very real and are here to stay. News of sophisticated cyber attacks against countries, private and public organizations, networks, national infrastructures, among other cases, are published daily. The results of these attacks can be devastating to business continuity, leading to loss of income, damage to reputation, legal expenses, and even a threat to human lives.
Cyber risks are very real and are here to stay. News of sophisticated cyber attacks against countries, private and public organizations, networks, national infrastructures, among other cases, are published daily. The results of these attacks can be devastating to business continuity, leading to loss of income, damage to reputation, legal expenses, and even a threat to human lives.
Alongside high-profile targets like credit card companies, banks, social media giants like Facebook and Twitter, or e-commerce websites, “hackers” do not overlook Small & Medium-sized Businesses (SMBs), and may even be more interested in those, as they yield high reward relative to the tiny “investment” involved in hacking them.
Today, more and more companies realize that even if it seems that they have taken all precautions and protection measures, there is no such thing as a “perfect shield,” and there is a high probability that their network, website, and/or database could face a malicious intrusion attempt at one time or another. The only question is when.
In an era where we share information, expand online activity, and sell cloud computing software, on the one hand, and where corporations hold more and more responsibility with regard to the information they gather (i.e., customer credit card details, money transfers, history, medical files and other sensitive information) on the other hand, there is fertile ground for the actions of hostile players, which can cause extensive damage to companies and managers, but which, until recently, were not considered as part of the risk management protocol.
Cyber insurance products include Professional Indemnity policies that protect online confidentiality and privacy.
Insurance policies change according to the needs of the insured, the different degrees of risk considering the areas of service, activity and scope, and offer coverage for damages this kind of attack may cause, such as:
Claims filed by third parties (customers, suppliers, and others)
Damages caused to computer systems following malicious intrusion, such as viruses.
Copyright violations
Breach of privacy
Infringement of intellectual property
Moreover, the policies cover first-party damages (the party purchasing the policy) as well as damages incurred directly by the business, such as:
Business continuity disruption following the hack.
Damaged data recovery
Cyber extortion
Loss of income
Crisis management expenses, and more …
© All rights reserved to Betach Toren | VIBIT Development | Design: Inbal Soroka
