How Does Cyber Insurance Work?
Cyber attack threat exposure is growing in strength. According to The World Economic Forum, there is growing inequality between those organisations that have robust cyber defences and those that don’t, particularly small and medium enterprises.
This study also found that the number of organisations maintaining minimum viable cyber resilience is down 30%. Plus, 90% of the survey respondents said urgent action is required to address cyber issues. It’s likely that businesses will need to take appropriate measures to protect assets and data.
Contents
What is cyber insurance?
Why is cyber insurance important?
How does cyber insurance work?
What do you need in place for cyber insurance?
Gain cyber protection with GasanMamo.
What is cyber insurance?
Cyber insurance, also known as cyber protection insurance, is an insurance product that supports businesses to reduce the risk of malicious cyber hacks or data breaches. The purpose is to protect an organisation from the possibility of confidential information loss or damage to systems and infrastructure.
Every business is responsible for their own cybersecurity and having procedures to safeguard organisational resources and data is necessary. However, a cyber insurance policy should provide essential support if a nefarious event happens and can help with costs incurred.
Essentially, cyber insurance is like any other type of insurance policy that protects against risk. It is there to reimburse a business that has suffered due to damage or loss.
Why is cyber insurance important?
Rates of cyber attacks are soaring. A recent study discovered that there were 652 publicly disclosed security incidents globally during April 2024, with over 5 billion records breached.
Naturally, businesses want to protect their assets, data and systems from attack as the possibility of threat vulnerability increases. The potential of serious damage to a business’s operations and reputation are high if data is compromised.
Organisations also have to consider the costs of a cyber incident, which can be significant. In general, a business won’t know the cost of a cyber hack until it happens, therefore the risk of continuing to function without cyber protection insurance is great.
In the event of a cyber hack, a business might have to pay out for incident response, crisis management, the recovery of compromised information or credit monitoring for customers who are affected.
How does cyber insurance work?
Purposely designed to safeguard organisations from the negative financial impacts of a cyber attack or data breach, cyber insurance typically covers the following:
First-party losses
These losses are generally related to the costs incurred through a business having to investigate a cyber incident and recover data, repair systems and protect against reputational damage.
Third-party losses
If there are any legal claims against an organisation as a consequence of a data breach, this aspect of cyber insurance can potentially recoup the finances spent on legal issues, settlements or regulatory fines.
Additional support
Cyber protection insurance can help to support risk management, business interruptions or post-breach repairs.
What do you need in place for cyber insurance?
Your business will need to examine its security practices and the resilience of your systems. With an exponential rise in cyber incidents, insurers will want to know how robust your security processes are to understand the level of threat vulnerability.
Cyber insurance policy providers are more confident if they have information on the robustness of a business’s security strategies and infrastructure. Once an insurance provider has determined your risk levels, they will offer you a policy that reflects your situation.
As an example, in order for a company to gain cyber protection cover with GasanMamo, the business needs to provide evidence that within the period of insurance there will be:
Maintained and routinely updated anti-virus software on any device that is part of the computer system.
Safeguarded firewalls on any device on the computer system.
Data assets are subject to monthly backup procedures and stored in a cloud environment or at an offsite location disconnected from your computer system.
Gain cyber protection with GasanMamo
Having secure and reliable cyber protection insurance is key to maintaining a well-functioning and trusted organisation. GasanMamo offers cyber protection insurance under our Business Protect product range. There are three main areas that make up the insurance cover:
Any investigation and other necessary costs incurred as a result of a security breach.
Costs incurred to restore access to the insured’s data assets or to recover, restore or replace any data assets that have been corrupted, destroyed or damaged.
Loss of business income and additional reasonable costs required to maintain business operations and services following a security breach.
Our cyber insurance policy is competitively priced. Ready to protect your whole business, our friendly team of experts who know the insurance industry inside out offer insurance solutions that help your organisation to thrive.
Discover more details about our extensive range of business insurance policies in our business insurance section or get in touch with our team for a chat.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
