Do I really need cyber liability insurance?


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Do I really need cyber liability insurance? – Rob Thacker, Pound Gates - From website hackings to the loss of unencrypted laptops, cyber security breaches can put your customer data at risk and your reputation on the line. Pound Gates’ Rob Thacker asks whether your business should take steps to improve customer data storage and consider cyber liability insurance.

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Do I really need cyber liability insurance?

  1. 1. EASILYDIGESTIBLEDIGITALINSIGHT#digitalbites @digital_bites
  2. 2. Do you really need cyberliability insurance?
  3. 3. •  Quick introduction•  What is Cyber Liability risk?•  Some well known cases•  How would Cyber Liability have helped?•  Who is at risk?•  How can you stop it and other thoughts?10 minutes Bite Sized explanation
  4. 4. Risk
  5. 5. Risk Management
  6. 6. I havepeace ofmindRisk Management and Insurance
  7. 7. Your Risks:•  Cyber Loss or Damage•  Business Interruption or Extra Expenses•  Cyber Theft•  Cyber ExtortionWhat is cyber liability insurance?
  8. 8. The highlights from this incident:•  Complete crash of RBS, NatWest & Ulster Bank’s payment systemfor four days;•  Complete failure to register payments;•  Bank extended hours at 1,200 branches;•  Compensation agreed for any/all who suffered financial loss;•  Expected final settlement over £170,000,000“Failed Automated Software” RBS/NatWest June 2012
  9. 9. Your risk from others:•  Cyber Media Liability•  Privacy Liability•  Cyber Security Liability•  Breach of confidentialityWhat is cyber liability insurance?
  10. 10. The highlights from this incident are as follows:•  Two separate data breaches in April and May 2011 lead to over 100million individuals details "exposed";•  12 million credit and debit cards compromised;•  Estimated to spend US$180,000,000 just on these breach relatedcosts; and•  UK Information Commissioners Office fined them £250,000 inJanuary 2013 for "preventable data breach".“Sony Playstation suffers massive breaches” April 2011
  11. 11. Any company that stores, manipulates,or transmits data is at risk of a cyberor physical theft eventWho is really at risk?
  12. 12. •  Cyber policies cover businesses whether they arenegligent or not (so no need to have been negligent).•  Physical loss of data account for 45% of losses – lostlaptops and data sticks.•  There were 855 data breaches reported in 2011.A few more thoughts
  13. 13. •  Some insurers immediately provide PR support – oftenthe first issue.•  There are 5 leading insurers.•  Costs:Below £1m t/o company: £500k limit, premium £1,802£5m t/o company: £1m limit, premium £4,452A few more thoughts
  14. 14. •  You can’t – Sony couldn’t – if people are determined…•  Risk management: Better firewalls, policies to controlstaff, continuity plans or not use the internet…•  If it’s news, then it’s on Twitter, and before you know,everyone else does…How can you stop it?
  15. 15. •  Mistakes do happen – we have seen lots of well knowncases now.•  Botnet attacked Wordpress two weeks ago, whilst Iwas writing this presentation.•  There is a word called “Hackivism”.How can you stop it?
  16. 16. Happy to take any questionsQuestions
  17. 17. Contact:Website: www.poundgates.comMy e-mail: rob.thacker@poundgates.comDirect line: 01473 346019
  18. 18. Thank you  Next Digital Bites – 23rd May  Would you like to be a speaker?  Subscribe to the Crafted Edition  Follow @craftedmedia