What is Cyber Insurance?

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What is Cyber Insurance?

Cyber Insurance is a relatively new form of “liability” insurance that has been developed to cover businesses for costs they can incur as a result of their computer systems being “hacked” and their own client data being stolen, manipulated or destroyed.

A newly released government report in Australia has shown that there is a rapid rise in the number of data breaches among organizations in the country, which suggests that there may be a growing need for cyber insurance.

According to the study, data security is a serious concern for many of the country’s largest businesses. Small businesses are beginning to feel threatened by the potential for cyber attacks as well.

As such, businesses are beginning to seek out the protection of cyber risk insurance, especially those that have a strong presence in the e-commerce world.

Over one fifth of companies that the government surveyed stated that they had been targeted last year (2012 calendar year).

There were 255 companies that participated in the government survey, and one in every five said that within the last year, they had been a target.

Because of this, many have considered cyber insurance to help to protect themselves against the damage that can be caused by these attackers, and to equip themselves with the tools that they need to recover quickly.

Cyber risk is steadily increasing: Data breaches affect hundreds of millions of records a year and reports of breaches continue to rise at a dramatic rate.

Awareness by customers has increased, fuelled by heightened media attention to incidents and litigation.

Cyber Insurance is designed to protect commercial businesses of all kinds against a wide range of first party (the insured business) and third party (the customers or other affected parties) liability cyber exposures that arise when their customer information is breached or stolen.

Companies with access to private, confidential information about their customers have a responsibility to keep it secure. Equally, companies who have a web presence or a dependency on technology have emerging content and transactional exposures.

If you keep client records on your computer and it is connected to the internet; if you have a website that clients can join or access and input their details, if you send client information to other businesses you could be a risk.

Action Plan :

VeriSure are Specialists Risk Advisors.

Our commitment to providing the very best Policy Terms and Conditions at the most competitive Premium together with our professional Claims Advocacy is paramount.

Contact us for an extensive Risk Assessment today.

Knowledge then Security.