The recent cyber-attack on Travelex has brought into sharp focus the damage that can be inflicted in this manner on any business, no matter the size. Aside from the obvious financial costs in terms of lost business, data recovery and ransom payments, the damage to their reputation may be something from which they may never recover.
Crisis management is the key to maintaining your reputation during a cyber-attack and this would appear to be woefully lacking in this case. Indeed, if the newspaper reports are to be believed, even their own staff have criticised the management response.
Fortunately, there is an answer. Cyber Insurance is available that will assist businesses and protect against the costs/losses incurred by a cyber-attack.
More importantly is the crisis management package that is included within the insurance. In the event of an incident, insurers will immediately respond with forensic examination to locate the source of the attack, nullify it and return the systems to working order as soon as possible without reference to the insurance.
In addition, they will also manage the crisis by creating customer helplines, releasing press statements, monitoring fraudulent use of client data and notifying relevant parties. Crisis management organised in this way, working in the company’s best interest will often be the difference between a full recovery from a cyber-attack with reputation maintained or not.
A cyber insurance policy can offer protection against the following risks:
- Data Breaches – where personal or commercial information (electronic or otherwise) is accessed without authorisation.
- Security Failure – a hacker exploits weaknesses in your security systems, leaving your business exposed.
- Cyber Attacks – any digital attack against your business.
- Extortion – criminals holding your systems or data to ransom or threatening to publish information.
- Human Errors – mistakes made by staff or suppliers that results in a data breach or system outage.
- Business Interruption – covering the loss of income that you may suffer from a cyber-attack.
- GDPR – covering your liabilities and the cost of defending regulatory investigations after any alleged breach of data protection legislation.
- Reputational Damage – includes PR and crisis management support, and covers lost revenue or customers.
- Financial Crime and Fraud – the use of the internet to deceive employees, customers or suppliers into transferring money or goods.
- Property Damage– physical damage to equipment or property resulting from a cyber-attack.
- Dependent Business Interruption – covering lost revenue or increased costs incurred if a supplier’s systems are taken ofﬂine by a cyber incident.
As recently reported in The Telegraph; “Given what’s at stake, it’s no surprise that the cyber insurance market has beenamong the fastest growing sectors of the market. It has been possible to insure against cyber risks since the 1990’s – but few companies bothered buying policies because the risks were viewed as fairly small and the fines negligible”
You can read more about the recent Travelex incident here:
In order to protect your business against this growing threat, please call John Keaney at WTJ Insurance Brokers on 01924 877236 for information, advice and a no obligation quotation.
The government has made changes to the claims process for low value road traffic accident (RTA) related personal injury claims, commonly referred to as ‘whiplash claims’, effective from 31 May 2021Read More
Only 11% of 18 to 25 year olds who participated in the survey say they had a good understanding of what’s covered by contents insurance, compared to 61% of those over 55 years of age.Read More
The new regulations, titled The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020Read More