What is a cyber attack?
A cyber-attack is a criminal activity that is carried out over the internet using computers. Financial gain is the main reason for cybercrime. Criminals can commit crimes from the comfort of their own homes, accessing large amounts of money very quickly. They are incredibly difficult to trace due to the ever changing and sophisticated nature of the attacks carried out.
There are many different types of cyber-attack. The most common type is ransomware. Many Irish organisations get hit with these attacks which denies them access to their system until a ransom is paid. Normally, there is a time limit to pay resulting in deletion of all your data if you refuse to do so.
Who should consider purchasing cyber insurance?
If your company holds client data, you should consider protecting yourself with cyber cover. There is a worrying misconception that cyber attacks only happen to large organisations. In fact, cybercriminals generally mass target smaller organisations, knowing their systems are more vulnerable and thus easier to infiltrate. Check your current insurance policy – most standard commercial policies will not provide this cover as standard which leaves you exposed.
Some Cybercrime facts:
- Small/Medium Irish firms are poorly equipped to deal with cybercrime, making them one of the highest ranking targets for attackers.
- Cyber crime is the second most reported economic crime in Ireland.
- In a recent PwC Cybercrime Survey, it is reported that the incidence of cybercrime in Ireland has almost doubled since 2012.
- Cybercrime financially damages a business with loss of billable time, notification costs and regulatory fines. It also causes reputational damage with customers, regulators and can even affect employee morale.
Cyber attacks on SME businesses in Ireland:
- A small solicitors firm had their computers hacked and files corrupted. Following IT investigations from the insurance company, it was confirmed that there was a virus. This virus spread to some of their customers who sued for damages. Claim paid of just over €23,000
- A sales executive for a car dealership had their company laptop stolen which contained confidential client details. A claim was paid to cover the investigation into the loss, to replace the laptop and to notify all clients. A claim payment of just over €18,000 was made.
- A clerical employee working in a manufacturing company clicked on a link in an email from one of their main suppliers. Unfortunately, the email was not genuine and the company systems were infected. The cost of investigating the issue, reinstating the system and notifying clients/suppliers was paid for roughly €10,000.
What will a cyber insurance policy cover?
- Hardware: Cover for physical equipment such as computers, laptops & mobile phones.
- Data Corruption & Extra Costs: Cost to investigate a loss and restore data following a cyber event.
- Cyber Crime: Covers your own financial loss following a breach when you need to source specialist support to investigate a breach and to advise on restoring system access.
- Cyber Liability: This covers damage and defence costs for third party loss e.g. transmission of a virus to a client or supplier.
- Data Breach Expense: PR and crisis management support, data breach notification and specialist support for data breach investigation.
- Cyber Event: loss of business income due to an attack.
Are you ready for The European Unions General Data Protection Regulation (GDPR) which comes into affect on 25th May 2018?
The GDPR will give regulatory bodies increased power to take action against businesses that breach new laws. The GDPR will also make it easier for individuals to claim against data controllers if their data privacy has been breached. This regulation applies to all companies that process data of any European individual. There will be significant fines of up to €20 million or 4% of annual turnover, whichever is greater.
Remember, we have taken the time to get to know the issues and peculiarities of your industry. To discuss your cover or get advice, give us a call today on 0818 22 3000 or fill in the form on this page and our specialists will be in touch by phone or email.