Do I really need cyber liability insurance?

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Do you really need cyber liability insurance?

•  Quick introduction

•  What is Cyber Liability risk?

•  Some well known cases

•  How would Cyber Liability have helped?

•  Who is at risk?

•  How can you stop it and other thoughts?

10 minutes Bite Sized explanation

Risk

Risk Management

I have peace of

mind

Risk Management and Insurance

Your Risks: •  Cyber Loss or Damage •  Business Interruption or Extra Expenses •  Cyber Theft •  Cyber Extortion

What is cyber liability insurance?

The highlights from this incident:

•  Complete crash of RBS, NatWest & Ulster Bank’s payment system for four days;

•  Complete failure to register payments;

•  Bank extended hours at 1,200 branches;

•  Compensation agreed for any/all who suffered financial loss;

•  Expected final settlement over £170,000,000

“Failed Automated Software” RBS/NatWest June 2012

Your risk from others:

•  Cyber Media Liability •  Privacy Liability •  Cyber Security Liability •  Breach of confidentiality

What is cyber liability insurance?

The highlights from this incident are as follows:

•  Two separate data breaches in April and May 2011 lead to over 100 million individuals details "exposed";

•  12 million credit and debit cards compromised;

•  Estimated to spend US$180,000,000 just on these breach related costs; and

•  UK Information Commissioners Office fined them £250,000 in January 2013 for "preventable data breach".

“Sony Playstation suffers massive breaches” April 2011

Any company that stores, manipulates,

or transmits data is at risk of a cyber or physical theft event

Who is really at risk?

•  Cyber policies cover businesses whether they are negligent or not (so no need to have been negligent).

•  Physical loss of data account for 45% of losses – lost laptops and data sticks.

•  There were 855 data breaches reported in 2011.

A few more thoughts

•  Some insurers immediately provide PR support – often the first issue.

•  There are 5 leading insurers.

•  Costs: Below £1m t/o company: £500k limit, premium £1,802 £5m t/o company: £1m limit, premium £4,452

A few more thoughts

•  You can’t – Sony couldn’t – if people are determined…

•  Risk management: Better firewalls, policies to control staff, continuity plans or not use the internet…

•  If it’s news, then it’s on Twitter, and before you know, everyone else does…

How can you stop it?

•  Mistakes do happen – we have seen lots of well known cases now.

•  Botnet attacked Wordpress two weeks ago, whilst I was writing this presentation.

•  There is a word called “Hackivism”.

How can you stop it?

Happy to take any questions

Questions

Contact: Website: www.poundgates.com

My e-mail: rob.thacker@poundgates.com

Direct line: 01473 346019

Thank you �  Next Digital Bites – 23rd May

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