Cyber security and insurance

Organisations have always had a duty to protect their clients’ privacy. Technology has simply altered the means by which sensitive information might be leaked and how a business prevents that from occurring.

As well as the risk mitigation measures outlined in our last article on this subject, factoring in specific cyber liability insurance cover is a sensible measure to take. While it can’t prevent breaches from happening, it can cover the costs associated with such attacks, which, as we’ve seen, can be excessive.

How is cyber insurance underwritten?

An insurer will look firstly at a business’s revenue, records and industry in assessing its residual risk. Different industries attract different types of attacks, such as theft of patient records from hospitals or intellectual property from manufacturers. Cultural perception of cyber risk within an organisation and at board level is another factor.

Records storage, management and protection is critical, and whether personnel use mobile devices and USBs to share information. Protocols should be established to contain sensitive data. The same applies to network operations and the organisation’s purview of them, as well as the level and volume of systems activity.

Vendor management and awareness of where responsibility for damage to third parties will land are also considerations, along with history of regulatory compliance with privacy law and previous claims for breaches – and how they were responded to.

As is the case with many areas of insurance, seeking expert advice from a qualified broker on the cyber insurance you need for your business’s unique risk exposures is highly recommended.

 

In conclusion

Protecting your business, and your clients, from cyber security breaches is a critical aspect of risk management. Preparing your organisation to meet the mandatory cyber attack reporting requirements is also equipping it to defend itself against them.

 

Need advice on cyber security for your business?

Gallagher is ACAPMA’s insurance partner with a team of specialist brokers for the convenience stores and petrol retail sectors. Request a cyber insurance quote, or more information on Gallagher’s products range here.

Gallagher has also released a guide to developing a data breach response plan for your business. This is available as a free download here.

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