Can Data Be Insured?
For many businesses their most important asset is data, be it their own company data or data belonging to their customers, yet it in the UK it is unlikely to be insured. However, in the USA approximately one third of firms will have some kind of data or cyber insurance.
Traditionally we have insured the physical belongings a business has, such as its equipment and contents, whilst also spending money on protecting these with security, alarms, locks, CCTV, etc. In this modern age we are also value the data and information we handle and store, which we also protect with security, locks, firewalls, virus protection, etc. However, even if the data and information is more valuable than the equipment it is stored upon this data is unlikely to be insured. This is despite the fact that it is far easier for a criminal to steal or access data than it is to steal equipment.
How can data and information be insured?
One of the best ways to insure data is with a quality cyber liability insurance policy. A decent cyber liability policy can cover against both deliberate and accidental incidents that lead to loss, damage or disruption of data. A cyber liability policy can also cover both your own data and data belonging to other people.
What cover will cyber liability insurance give?
Al l policies are different, however a good policy can give both technical and financial support for a wide range of circumstances. For example:
• A cyber incident response team to assist if you think you have suffered a breach
• IT support to restore systems in order to get you back to work
• Assistance in restoring or recreating data
• Legal support to defend data breaches and payment of damages
• Payment of insurable fines & penalties
• Legal advice to ensure you respond to an incident correctly
• Costs of notifying customers and regulatory bodies of data breaches
• Credit monitoring services for those affected by a breach
• Consultancy costs to minimise reputational damage
• Payment of lost profits resulting form a network interruption
• Ransom payments involving a security threat
• Payment of damages & defence costs relating to third party intellectual property
• Payment of damages & defence costs where you have been negligent with electronic content
How much does data insurance cost?
Prices vary between provider and dependent upon quality of cover. They will also depend upon the type of business you have, the security procedures you have in place and the amount of cover you require. Sutcliffe & Co Insurance Brokers can provide a comprehensive cyber liability policy from just £400. For assistance or a quote contact Sutcliffe & Co on 01905 21681 or send us your request here