Cyber Risk Ιnsurance
Until recently, companies have been looking to insure their tangible assets as well as their employees against possible risks in order to ensure their viability. The modern way of communication, globalization and the speed of internet development, the “internet of things” and the “big data”, lead now corporations to confront yet another danger, that of attacking their electronic data.
We often hear that a hacker team has created malicious software or threatened a company that it will gain unauthorized access to its records, usually for the purpose of blackmailing for money, damaging the reputation of the company, stopping its business operation so as to suffer financial harm, etc.
The new European regulation, GDPR679 / 2016which will be implemented as from 25/5/2018 on compliance and protection measures of personal data by companies that maintain personal data, predicts claims and demands from third parties in case of data leakage on the Internet, of up to 4 % of a company’s annual turnover and/or a fine.
In addition to companies providing technical support, special software, “firewalls”, remote servers, etc, yet another measure of defense has been added to protect companies from cyber-attacks. For that reason, cyber-insurance coverage policies have been created for companies to protect their electronic data and financial balance sheets in case they receive an electronic threat or attack.
Indicative coverage of a Cyber Risk Insurance Policy:
- Expenses of immediate confrontation/management of incident
- Negotiators’ expenses in case of threat/blackmail
- Blackmail expenses to prevent leakage of personal data (in cash or cryptocurrency)
- Legal advice
- Expenses of retrieving/restoring data
- Expenses of fame restoration
- Expenses of disclosing the incident
- Expenses of failure to communicate the incident
- IT Services
- Cover of fine in case of loss of personal data
- Civil Liability of the company vis-à-vis third parties whose personal data were revealed
- Costs and services for managing system breaches and loss of confidential information
- Expenses for disruption of company’s operations due to a violation of electronic systems
- Cyber-crime expenses
- Cover of digital means
Who may need Cyber Risk Insurance:
- Telecommunication companies
- Shipping Companies
- Health service providers
- Law firms
- Advisory firms
- Clinics – Hospitals
- Diagnostic centers
- Betting Companies
- Online stores (E-shops)
- Call Centers
- Companies organizing conferences & events
- Companies of data storage (cloud)
- Public utility companies
- Banks – stock brokerage – insurance companies
- Data processing companies
- Transport companies
- Educational institutions
- Retail chains
- Web design companies
- Hotel units
- Software companies
- Loyalty card companies
- Airline companies
- Recruiting Companies
- Industry – Metallurgy
- Construction Companies
Cost of premium for a Cyber Insurance Policy – Cover for cyber attacks:
The premium for a Cyber insurance policy is calculated according to the annual turnover of the company, the type of business, the coverage, the protective measures it has taken, the insurance capital which the company wants, etc.
Indicatively, for a company with an annual turnover of about 1,000,000 Euro and a cover for 1,000,000 Euro the premium starts from 1,800 Euro per year.
Combination of insurance against cyber-attacks with business insurance
For businessmen who wish to have full coverage of their business against any potential risk, cybercrime coverage can be combined with his business insurance.
For more click here.