Cyber risks are no longer the property of science fiction movies only. News is published daily about sophisticated attacks which are carried out against countries, private and public organizations, public and private networks, national infrastructures and more.
The results of these attacks can be devastating to the point of stopping the activity of the victim, loss of income, damage to the company’s reputation, legal expenses and even loss of human life.
The threat of hacker attacks – whether their motive is economic, criminal, anarchist or political – is getting worse to such a degree that the experts in the field admit that nowadays it is already impossible to prevent the hacking incidents completely.
Along with credit companies, banks, mega websites such as Facebook and Twitter (“X”) or online shopping sites, the hackers do not pass on small and medium sized companies and may even be more interested in them, as they yield a high reward in relation to the efforts involved in hacking them.
According to a study by the European Risk Managers Association, cyber threats are one of the main concerns of Risks Managers in organizations, along with damage to reputation, supply chain and business continuity. The average damage can be up to NIS 400,000 for a small organization, and 75% of the hacks in the US were for businesses with less than 100 employees.
Imagine for a moment what might happen to a business, if the computing activity in it stops for an hour, a day, a week? What is the potential damage to your business, customers, employees?
As part of the existing policies in the market, the following coverages are included:
Expenses:
- Expenses if the business causes damage to a third party, such as:
- The cost of notifying customers (or the supervisory authority) that their data was affected by a security breach.
- Reasonable expenses for training regarding identity theft and monitoring the credit activity of the individuals affected.
- Defense expenses and compensation if the business (or the firm handling its outsourced affairs) caused the hack for personal data or corporate data.
- Defense expenses and compensation if the business is harmed by the theft of a data access code by non-electronic means.
- Defense expenses and compensation if the business is damaged by the theft of hardware containing personal data.
- Defense expenses and compensation if an employee of the business caused data disclosure.
- Information security and privacy protection expenses, such as:
- The costs of legal advice and representation in connection with an information security investigation.
- Insurable fines and levies imposed by a regulatory authority.
Consulting services:
- IT expert consultants who worked for the business during and after a cyber breach, which mainly includes expenses for experts to determine the ability to recover electronic data, its reassembly or recreation.
- Consultants and experts for the protection of the company’s reputation and its restoration after a cyber hack, such as:
- Professional consulting expenses to prevent possible consequences or to reduce their impact after a publicized cyber incident.
- Professional consulting expenses to reduce the possible damage to the reputation of any private person in the company (for example, a Chief Information Officer).
Optional covers:
- Network disruption – loss of profits (net) as a result of a substantial disruption to the insured’s network caused by a security breach.
- Cyber extortion – settlement payments (extortion damages) to third parties to be paid in order to resolve a security threat.
- Multimedia liability – defense expenses and compensation to be paid in connection with hacking of the intellectual property of a third party or negligence in connection with electronic content.