R e a s o n s t oB u y C y b e rL i a b i l i t yI n s u r a n c e

10

01DATA IS NOT COVERED

AS AN ASSET WITHSTANDARD PROPERTY

INSURANCE

DATA OR INFORMATION IS ONE OF THE MOST IMPORTANT

ASSETS TO A COMPANY

A STANDARD PROPERTY POLICY WOULD NOT RESPOND IN THE

EVENT THAT THIS DATA IS DAMAGED OR DESTROYED

A CYBER POLICY CAN PROVIDE COMPREHENSIVE COVER FOR

DATA RESTORATION AND RECTIFICATION

02COMPANIES RUNON SYSTEMS

ALL BUSINESSES RELY ON SYSTEMS TO CONDUCT THEIR CORE

BUSINESS

A STANDARD BUSINESS INTERRUPTION INSURANCE WOULD NOT

COVER EVENTS SUCH AS A HACK ATTACK, COMPUTER VIRUS OR

A SYSTEM BREACH

CYBER INSURANCE PROVIDE COVER FOR LOSS OF PROFITS

ASSOCIATED WITH A SYSTEMS OUTAGE CAUSED BY A NON

PHYSICAL PERIL

03CYBER CRIME ISGROWING

INTERNET MEANS YOUR BUSINESS IS EXPOSED TO WORLD'S

CRIMINALS

PHISHING SCAMS, IDENTITY THEFT AND TELEPHONE HACKING

ARE NOT ADDRESSED BY TRADITIONAL INSURANCE

CYBER INSURANCE UPDATE IT'S POLICIES WITH THE TYPES OF

CRIMES

04THIRD PARTYDATA

PROTECTION

COULD BE HELD LIABLE IF LOSE DATA BELONGS TO CUSTOMERS AND

SUPPLIERS

NON-DISCLOSURE AGREEMENTS AND COMMERCIAL CONTRACTS

OFTEN CONTAIN WARRANTIES AND INDEMNITIES IN RELATION TO TO

THE SECURITY OF DATA

CUSTOMERS ALWAYS SEEK LEGAL REDRESS IN A EVENT THAT A

BUSINESS LOSSES THEIR DATA

05LOSS OF CREDITCARD DATA

GLOBAL CREDIT CARD CRIME IS WORTH OVER $7.5BN AND THIS

RISK BEING TRANSFERRED TO THE RETAILERS THAT LOSE THE

DATA

COMPROMISED RETAILERS CAN BE HELD LIABLE FOR FORENSIC

INVESTIGATION COSTS, CREDIT CARE RE ISSUANCE COSTS AND

THE ACTUAL FRAUD CONDUCTED ON STOLEN CARDS

THESE LOSSES COULD RUN IN TO HUNDREDS OF THOUSANDS OF

DOLLARS

06COMPLYING WITH

BREACH NOTIFICATIONLAWS COST MONEY THESE GENERALLY REQUIRE BUSINESSES THAT LOSE

PERSONAL DATA TO PROVIDE WRITTEN NOTIFICATION TO

THOSE INDIVIDUALS THAT WERE AFFECTED

IN SOME COUNTRIES THIS IS VOLUNTARY IN ORDER TO

PROTECT YOUR BRAND AND REPUTATION AS CUSTOMERS

EXPECT OPENNESS AND TRANSPARENCY FROM A BUSINESS

CYBER POLICIES COVER THESE COSTS IF IT IS NOT LEGALLY

REQUIRED

07PROTECT YOURREPUTATION

YOU COULD LOSE YOUR REPUTATION TO YOUR LOYAL

CUSTOMERS IN AN EVENT OF A SECURITY BREACH

LOSING A LOYAL CUSTOMER COULD HARM THE BUSINESS FOR

MORE THAN THE IMMEDIATE FINANCIAL LOSS

CYBER INSURANCE COULD HELP YOU TO ENGAGE A PR FIRM TO

RESTORE THIS AND ALSO TO COVER THE LOSS OF FUTURE

SALES THAT COULD CAUSE BY A LOST CUSTOMER

08HIGH SOCIALMEDIA USAGE

INFORMATION IS EXCHANGED AT LIGHTNING SPEED AND EXPOSED

TO THE WORLD

SINCE THERE IS A LITTLE CONTROL OVER SOCIAL MEDIA IT CAN

GIVE RISE TO LIABILITY FOR BUSINESS WHO ARE RESPONSIBLE

FOR THE ACTIONS OF THEIR EMPLOYEES ON SITES SUCH AS

LINKEDIN, TWITTER AND FACEBOOK

CYBER INSURANCE PROVIDES COVERAGE FOR CLAIMS ARISING

FROM LEAKED INFORMATION, DEFAMATORY STATEMENTS

OR COPYRIGHT INFRINGEMENT

09PORTABLE DEVICESCOULD BE LOST

PORTABLE DEVICES MAKES IT EASY TO WORK AWAY FROM THE

OFFICE BUT ALSO IT EXPOSE CONFIDENTIAL DATA TO BE STOLEN

EASILY

A LAPTOP LEFT IN A TRAIN, AN I PAD STOLEN AT A RESTAURANT,

LOSS OF A USB STICK COULD PUT A BUSINESS IN TROUBLE IN NO

TIME

CYBER INSURANCE COULD COVER THE COSTS ASSOCIATED WITH A

DATA BREACH SHOULD A PORTABLE DEVICE BE LOST, STOLEN OR

FALL VICTIM TO A VIRUS

10SMALL BUSINESSESARE ALSO EXPOSED

OVER A THIRD OF GLOBAL TARGETED ATTACKS WERE AIMED AT

BUSINESSES WITH LESS THAN 250 EMPLOYEES

SMALL BUSINESSES STRUGGLE WITH FINANCIAL RESOURCES

TO GET BACK ON TRACK AFTER A CYBER ATTACK

CYBER INSURANCE SMALLER COMPANIES AGAINST THE

POTENTIALLY CRIPPLING FINANCIAL EFFECTS OF A PRIVACY

BREACH OR DATA LOSS

REFERENCE

Affiliated Brokers Exchange Ltd, Waterloo, www.abexinsurance.com

cfc Underwriting, London, England , www.cfcunderwritting.com

US Leads World Credit Card Fraud States, www.businesswire.com, 2011

News Release, www.symantec.com, 2012

Created by