Cyber claims on the rise
Cyber claims are being made at a rate of more than one a day according to figures from insurer CFC Underwriting.
The company advised that in 2016 it had handled more than 400 claims on cyber-breach policies it had issued.
Privacy breaches and theft of cash were the main types of attack being claimed for, it said, with the massive amount of stolen data shared online driving many attacks.
The third most prevalent claim cause was Ransomware. However with the recent attacks on the NHS and numerous other businesses, this may be heading to the top of the table this year! Ransomware is where data is encrypted by hackers until the victim pays them to unscramble it.
Cyber-breach claim categories
- Privacy breach 31%
- Financial loss 22%
- Ransomware 16%
- Malware/viruses 7%
- Website attacks 5%
- Unauthorised access 5%
- Business interruptions 4%
- Other 10%
Source: CFC Underwriting
Cyber Claims Insurance
Cyber Claims Insurance is becoming a necessity to help businesses cope with attacks.
It’s incident response service is proving invaluable – you ring up the insurer and they get experts in to help.
Many insurers now have security, data forensics, incident response and PR firms on call to help respond when a claim is filed.
Some also employee experts who have experience negotiating with kidnappers and can advise about the best way to deal with ransom and extortion demands.
The costs associated with investigating and fixing a breach are so high, that the cost of a Cyber policy is extremely competitive. The costs aren’t just instant either, if a breach becomes public knowledge (which it will if data is stolen) the PR fallout can be such that the business may never recover.
Don’t think that this won’t happen to you – the recent breach of the NHS shows that hackers are willing to go after anybody, even those trying to save lives.
Obtain a cyber insurance quote
Visit our dedicated page to find out more about Cyber Insurance and obtain a quotation.