Do I Need Cyber Liability Insurance? | Covered Insurance

Do you need cyber liability insurance? In this report Covered Insurance look into whether you need cyber liability insurance or not and what to do

What Is A Breach Of Data?

A data breach is any uncontrolled release of confidential commercial information. Commercial data can take the form of:

  • Trade secrets

  • Board reports

  • Personnel files

  • Finance records

  • Account information

Data breaches can happen in a number of ways:

  • Loss of physical data – Data is lost or stolen either by accident or through negligence.

  • Disgruntled employee – Sensitive or confidential information is published on the internet or commercial information is sold to competitors.

  • Network attack – A 3rd party gains access to an internal network and steals data. This can be very dangerous as it may not be immediately obvious that a breach has occurred.

What Is A Cyber-Attack?

A cyber-attack is an attack on a network designed to take it down.

These acts can be carried out for ideological reasons – for instance, if a group of hackers disagree with a company’s stance on something – or for purely financial gain.

Earlier this year Anthem suffered a breach of data when nearly 800 million records, including personal information such as names and salary, were exposed.

In 2014, nearly 200 photographs of celebrities were leaked online by image board website 4chan. It was later discovered that the group had hacked into Apple’s iCloud software.

These attacks can be carried out using a number of methods:

  • Targeted virus attacks – Designed to carry out a number of acts, including monitoring keystrokes and stealing data, property and revenue.

  • Trojan Horses – A harmful code contained within a seemingly safe program.

  • Distributed Denial-of-Service (DDoS) – An attack designed to interrupt or suspend the service of a host.

Individuals and organisations target computer information systems using various malicious acts to gain data each and every day. It is therefore crucial to ensure your business is insured to cover all eventualities.

Potential Risks

  • Loss of earnings

  • Monetary fine

  • Legal action

  • Reputational damage

Safeguard Your Business

Protect your livelihood, confidential data and safeguard your reputation by investing in the right insurance cover for your business.

Contact Covered Insurance Solutions today to discuss your insurance options.