The Cyber ​​Risk Insurance all you need to know

The threat that cyber risks pose to businesses is becoming more and more evident. The probability of a cyberattack increases year after year, and the consequences for increasingly connected businesses can be catastrophic for their balance sheets and reputations.

Fortunately, there are increasingly better cyber risk insurances to deal with all kinds of cybercrimes and computer attacks against companies. Today we will talk about the solutions offered by the best cyber insurance.

Insurers are developing powerful solutions to address threats in a digitized environment where cyber risk is a real risk. Think that every year more than 100,000 cyberattacks occur in Spain and 30% of them are directed against companies and professionals.

Cyber ​​attacks can have dire consequences for your business. From leaving the company’s systems hanging and stopping all its activity, to leaving your applications inactive so that you cannot respond to suppliers and customers.

That, without forgetting the risk of losing vital data for your business. Can you imagine the economic losses that a cybercrime would cause you?

The online world has become very dangerous. Companies are exposed to malware , ransomware , viruses, data loss or leakage with consequences for the company’s reputation and with more than possible economic claims from customers and suppliers due to the security breach opened in your files.

Many times, these cybercrimes are accompanied by extortion. In other words, a hacker can block customer or supplier data or your social network accounts and then ask you for money to restore them. Everything leads to the same: economic losses and damage to the image of the company.

What are cyber risks?

cyber risk is the probability that a threat materializes on a vulnerability of a computer system, causing the situations we have talked about.

Basically, cyber risks range from the possibility of losing information on computer equipment or seeing all company systems blocked, to the action of hackers to manipulate or steal data, or even cause power outages or paralyze machinery. a company.

There is a long etcetera of possible computer damage , which in recent years has increased with digitization and greater dependence on cloud services. And not only has the damage increased: in 2020, in the midst of a pandemic, cybercrimes skyrocketed by more than 30% in Spain. And today no one can feel safe from this threat.

How much does a cyber attack cost?

These cyber risks, especially cyber attacks, can have very serious consequences. Think about what the loss of company data means (commercial and financial data, patents, projects…),

The security breach in customer and supplier databases, the claims that these people or suppliers can make to you, the complaints of the Data Protection Agency, the loss of trust… There are companies that have not been able to overcome a cyber attack and have had to close.

If we put figures, we see that the bill of a cyber attack can be very high. The cost of solving a cyber attack can cost thousands of euros. There are reports that companies affected by cybercrime have to pay between 35,000 and 70,000 euros to solve their digital security problems after a cyber attack.

In this sense, business insurers have become allies of their clients by developing solutions that not only cover these cyber risks, but also focus on prevention, so that SMEs and businesses are better prepared for a serious threat such as is.

What does cyber risk insurance cover?

Cyber ​​risk insurance offers a wide range of coverage with which they intend to provide a solution to the various consequences that a cyber attack has for any company or business.

In this way, it can cover the damage caused to the company’s systems and databases, in addition to covering the civil liability of the entrepreneur or self-employed professional for the loss of personal data of third parties (employees, suppliers and customers), such as as a result of having suffered a cyber attack or other computer incident.

Likewise, cyber insurance can serve as a tool to prevent computer attacks or security breaches. These are the most common coverages that we can find in the best cyber risk insurance:

Civil Liability Coverage

The Civil Liability coverage in this type of policy offers protection against damages caused to third parties as a result of a cyber incident, such as could occur in the event of a loss of personal data.

Damage Coverage

This guarantee covers the loss and theft of data or intellectual property, as well as damage to computer equipment. In this way, the cyber insurance assumes the costs of repairing and restoring the deleted data, as well as the damaged equipment and the costs that the restoration of the access control system may entail.

Business Interruption Guarantee

Cyber ​​risk insurance already has guarantees that cover losses arising from business interruption as a result of a cyber attack or other computer incident.

Cyber ​​Crime Coverage

This guarantee covers various types of cybercrimes that companies may suffer, from phishing scams to identity theft, phone hacking crimes, identity theft, electronic fraud and cyber extortion, among others.

Computer attack and cybercrime management coverage

There are already insurances that cover the expenses of management, reaction and crisis communication during a cyber attack. This guarantee covers from the expenses of external technical assistance and investigation of the incident, to the performance of forensic analysis , in the event that a serious cybercrime has occurred, such as data leaks , hacking or similar, among others.

This coverage also includes expenses related to the consequences of reputational damage and notifications to customers and suppliers in the event of data theft.

Legal defense

Cyber ​​insurance also covers those expenses related to legal, judicial or mediation procedures related to this type of loss.

LOPD services, prevention and security

In addition, cyber risk policies already usually include various services focused on the prevention of cyber crimes, data security and the adaptation of the company’s computer systems to regulations. In this sense, personalized adaptation services are offered to the Organic Law on Data Protection (LOPD).

Services for prevention are also usually offered, such as external and internal analysis of the client’s computer networks and web support services or telephone advice related to this matter.

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