As more businesses move online, cyber security has become essential for companies both big and small. From ensuring personal data protection to reducing financial costs associated with cyber attacks, the team at Expat Insurance shares why business owners should consider adding cyber insurance to their business insurance policies.
What is cyber insurance?
Cyber insurance is a type of insurance that protects businesses from cyber attacks – infringements of data or systems – and the accompanying financial risks associated with doing business online. For example, the loss, compromise or theft of electronic data can have a negative impact on a business, including the loss of customers and revenue. So, cyber security is crucial for personal data protection, business ideas, property and daily operations.
Why should my business insurance policy include cyber insurance?
While general business insurance can protect your company from any risks and losses, cyber insurance adds an additional layer of security. In short, it’s an essential component of a good business insurance policy. Having this cyber security will give your business investors peace of mind and reduce costs incurred for any incidents such as cyber attacks.
Common cyber attacks include phishing scams, malicious malware and Distributed Denial of Service (DDoS). SMEs remain favourite targets of hackers, too; that’s because, unlike MNCs, they don’t have strong IT security in place.
Privacy and data protection
Cyber attacks and breaches are occurring at an increasing rate. And, with the majority of business operations dependent on technology these days, cyber security risks are a concern for any company that creates, stores and manages electronic data online. This includes customer contacts, sales information and also credit card numbers.
As a business owner, it’s your job to ensure data protection for both your consumers and employees. Whether you store data in a third-party cloud storage or an offsite data warehouse, you are responsible for any leaks or loss of personal data. If this data is unprotected, a cyber attack can be damaging to your business.
What does cyber insurance cover?
If your company experiences a cyber attack, a good cyber insurance policy will cover you for expenses that result from the physical destruction or theft of information technology (IT) assets. This typically includes costs associated with:
- privacy regulatory defence fees and penalties;
- notifying consumers when a security breach has occurred;
- hiring forensic experts to determine the extent of the cyber attack and recover compromised data;
- post-breach protocol to limit and mitigate the reputation and image of the business; for example, hiring public relations or crisis management specialists;
- meeting extortion demands from a ransomware attack; and,
- business interruption: indemnification for loss of gross margin.
These costs could easily run into the hundreds of thousands if you’re not insured. Protecting yourself with the right policy, and making cyber security a priority is therefore a wise business move.
How to add cyber insurance to your business insurance policy
As leading insurance brokers, the Expat Insurance team can tailor a business insurance plan to meet your needs. Speak with Expat Insurance to see how a customised package with cyber insurance can help secure your business.
Written in collaboration with:
Expat Insurance
6401 9201 | expatinsurance.com.sg
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