Top lies that blind companies not to invest in Cyber risk insurance

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When systems fail, businesses cease to trade, customers withdraw their loyalty, companies make losses posing a risk of eventually closing down.

While this is quite obvious, hundreds of companies across the country, region and globe at large still remain unshaken or probably play ignorant to the risks staged by Cyber breaches.

The ignorance is beyond imaginable levels since most firms believe by having anti-virus software installed in their computers then they are safe from being attacked. It’s a lie.

Others believe that having a commercial property insurance cover or a business interruption cover then they are good to go. It’s another lie.

Commercial property insurance protects your physical computers, but not the data store on them, while business interruption cover will not respond to outages caused by computer viruses or hackers.

One more lie that has befallen most firms is the confidence that they are near-impenetrable from attacks by malicious hackers Just because they have invested heavily in the best security tools and even audited employee devices that connect to their network.

A last one; companies have developed a tendency of giving too much information to the so called consultants, and external auditors inclusive security details such as passwords that allow them to log into their systems.

With no surety that this auditors have experience in cyber security related matters, these firms forget to revoke all access to their systems by the same consultants or external auditors once their contract is over, hence exposing them to risks of being attacked.

According to AoN Kenya insurance firm, Commercial property insurance protects your physical computers, but not the data store on them, while business interruption cover will not respond to outages caused by computer viruses or hackers.

The firm, a leading provider of cyber risk insurance has a Security and Private Liability package under its Cyber risk insurance cover which companies can adapt to mitigate making losses, losing customers and closing the loopholes of shutting down.

The package covers denial of service attacks, failure to protect loss, theft, corruption or deletion of data arising from hacking, viruses, acts of employees, and all other privacy breaches covered howsoever they arise.

Other packages in the AoN Cyber risk insurance covers include Technology Errors and Omissions which covers professional liability and unintentional breach of contract, Multimedia Liability which covers defamation, libel, slander, plagiarism and full intellectual property coverage including copyright and trademark for online or offline print media.

Cyber Risk Insurance covers denial of service attacks, failure to protect loss, theft, corruption or deletion of data arising from hacking, viruses, acts of employees, and all other privacy breaches covered howsoever they arise.

Also part of the cover is a data Recovery and Loss of Business Income Coverage which cover first party costs to reinstate systems and data as well as loss of income/profits as a result of a very broad set of first party insured events including security breaches, virus, hacks, human error, electromagnetic disturbance, programming error and natural disasters.

Privacy Regulatory Defense and Penalties which pays on the client’s behalf those fines and penalties levied as a result of privacy breaches,Crisis Management Costs, Customer Notification Expenses is the other package or feature of the cover.

Lastly is the Customer Support and Credit Monitoring package which includes PR costs required to help mitigate reputation harm as a result of a privacy breach and first party cover for the cost in notifying customers of a beach and any subsequent support or credit monitoring required, and the data Extortion which covers costs incurred as a result of extortion and ransom


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About the Author

Muhatia
Trust is my currency, biscuits are my best snacks. A business story by me that has sparked change, informed and made a positive difference is what makes me going. I yearn to achieve more through writing Reach me via editor@biznews.co.ke