Proven solutions
Cyber Insurance
Data phishing, ransomware attacks on your company – cyber insurance can help with these issues.
2 min reading
28 March 2024
Our clients associate cyber insurance with protection against the consequences of personal data breaches. Indeed, this solution is perfectly suited for this issue. But that’s not all!
Cyber insurance is a product that is essential today for conducting safe business operations. Above all, it helps companies that need to cover the costs of defense, for example, in administrative proceedings before the Personal Data Protection Office (UODO in Polish). Therefore, it is ideally suited for organizations that process huge amounts of personal data, for example, in local government units.
The penalties for data breaches can be enormous!
Cyber insurance helps to mitigate these risks.
However, every coin has two sides, and so do cyber threats. The other side involves increasingly common ransomware attacks (which can block, for example, a production line) or email fraud leading to payments being transferred to fake accounts. No matter what company or industry you represent – you can become a victim of a cyber attack.
Cyber insurance provides compensation necessary to rectify such situations. We discussed how cyber insurance works in detail during one of the webinars for our clients. We highly encourage you to replay this meeting!
What events do cyber insurances protect against?
Example No. 1:
Your employee visited a website, downloaded a document, and opened a seemingly harmless file. The next day, warehouse orders and cash registers began to malfunction, and sales were halted.
Example No. 2:
An employee received a message supposedly from the IT department asking to log in on a new email access page. Without paying attention to the message’s content, he clicked the link and entered his login details. It turned out that a hacker gained access to the employee’s mailbox, which contained confidential customer data.
Example No. 3:
An unscrupulous employee stole over 400 personal data records of clients. It was discovered that the data had been provided to the new employer. There was a violation of GDPR, so a notification had to be submitted to the President of the Personal Data Protection Office and the individuals concerned by the data breach.
Costs of Extortion
Sometimes, a single careless click is all that separates us from falling into the trap of phishing extortion. Hackers are cunning, impersonating company contractors, banking institutions, or courier services. In this way, they can, for example, block information systems and demand ransom for their reactivation. Cyber insurance covers the reimbursement of such extortion costs (including the ransom amount).
Crisis Management
We have been concerned with security for years, which is why we know that actions taken in the first minutes/hours after an incident occurs are of utmost importance. In the case of cyber incidents, the victim can suffer huge reputational losses. Therefore, it's crucial to implement measures as quickly as possible to prevent this. A cyber policy will ensure reimbursement for the costs of defending a good name (e.g., hiring a PR team to help develop a media strategy for difficult times, or notifying those affected by a data breach). It will also contribute to identifying the source of the problem – helping to cover the costs of forensic IT.
Lost Profit
Every downtime in production causes losses, the costs of which escalate exponentially with each passing hour. A cyber policy provides reimbursement for losses caused by disruptions to information systems. Therefore, if production is halted, for example, as a result of a hacker attack or unauthorized employee action – you will receive compensation.
Defense Costs
Cyber insurance provides reimbursement for defense costs in administrative proceedings before the Personal Data Protection Office (UODO) and for administrative fines imposed on the company in case of GDPR violations. It also covers the reimbursement of defense costs and awarded damages for civil liability due to data leakage or loss.
Z naszych usług brokerskich korzystają:
- Local Government Units
- Food and Beverage Manufacturers
- Transport Companies
- Heavy Industry (Machinery)
- Video Game Developers
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