Cyber crimes are growing rapidly and cyber liability insurance is the safest way for companies to stay harmless. Information security is expected by all the customers and loss of these information could cost a company loyal customers and financial crisis.

1. R e a s o n s t o
B u y C y b e r
L i a b i l i t y
I n s u r a n c e
10

2. 01
DATA IS NOT COVERED
AS AN ASSET WITH
STANDARD PROPERTY
INSURANCE
DATA OR INFORMATION IS ONE OF THE MOST IMPORTANT
ASSETS TO A COMPANY
A STANDARD PROPERTY POLICY WOULD NOT RESPOND IN THE
EVENT THAT THIS DATA IS DAMAGED OR DESTROYED
A CYBER POLICY CAN PROVIDE COMPREHENSIVE COVER FOR
DATA RESTORATION AND RECTIFICATION

3. 02COMPANIES RUN
ON SYSTEMS
ALL BUSINESSES RELY ON SYSTEMS TO CONDUCT THEIR CORE
BUSINESS
A STANDARD BUSINESS INTERRUPTION INSURANCE WOULD NOT
COVER EVENTS SUCH AS A HACK ATTACK, COMPUTER VIRUS OR
A SYSTEM BREACH
CYBER INSURANCE PROVIDE COVER FOR LOSS OF PROFITS
ASSOCIATED WITH A SYSTEMS OUTAGE CAUSED BY A NON
PHYSICAL PERIL

4. 03CYBER CRIME IS
GROWING
INTERNET MEANS YOUR BUSINESS IS EXPOSED TO WORLD'S
CRIMINALS
PHISHING SCAMS, IDENTITY THEFT AND TELEPHONE HACKING
ARE NOT ADDRESSED BY TRADITIONAL INSURANCE
CYBER INSURANCE UPDATE IT'S POLICIES WITH THE TYPES OF
CRIMES

5. 04
THIRD PARTY
DATA
PROTECTION
COULD BE HELD LIABLE IF LOSE DATA BELONGS TO CUSTOMERS AND
SUPPLIERS
NON-DISCLOSURE AGREEMENTS AND COMMERCIAL CONTRACTS
OFTEN CONTAIN WARRANTIES AND INDEMNITIES IN RELATION TO TO
THE SECURITY OF DATA
CUSTOMERS ALWAYS SEEK LEGAL REDRESS IN A EVENT THAT A
BUSINESS LOSSES THEIR DATA

6. 05LOSS OF CREDIT
CARD DATA
GLOBAL CREDIT CARD CRIME IS WORTH OVER $7.5BN AND THIS
RISK BEING TRANSFERRED TO THE RETAILERS THAT LOSE THE
DATA
COMPROMISED RETAILERS CAN BE HELD LIABLE FOR FORENSIC
INVESTIGATION COSTS, CREDIT CARE RE ISSUANCE COSTS AND
THE ACTUAL FRAUD CONDUCTED ON STOLEN CARDS
THESE LOSSES COULD RUN IN TO HUNDREDS OF THOUSANDS OF
DOLLARS

7. 06
COMPLYING WITH
BREACH NOTIFICATION
LAWS COST MONEY
THESE GENERALLY REQUIRE BUSINESSES THAT LOSE
PERSONAL DATA TO PROVIDE WRITTEN NOTIFICATION TO
THOSE INDIVIDUALS THAT WERE AFFECTED
IN SOME COUNTRIES THIS IS VOLUNTARY IN ORDER TO
PROTECT YOUR BRAND AND REPUTATION AS CUSTOMERS
EXPECT OPENNESS AND TRANSPARENCY FROM A BUSINESS
CYBER POLICIES COVER THESE COSTS IF IT IS NOT LEGALLY
REQUIRED

8. 07PROTECT YOUR
REPUTATION
YOU COULD LOSE YOUR REPUTATION TO YOUR LOYAL
CUSTOMERS IN AN EVENT OF A SECURITY BREACH
LOSING A LOYAL CUSTOMER COULD HARM THE BUSINESS FOR
MORE THAN THE IMMEDIATE FINANCIAL LOSS
CYBER INSURANCE COULD HELP YOU TO ENGAGE A PR FIRM TO
RESTORE THIS AND ALSO TO COVER THE LOSS OF FUTURE
SALES THAT COULD CAUSE BY A LOST CUSTOMER

9. 08HIGH SOCIAL
MEDIA USAGE
INFORMATION IS EXCHANGED AT LIGHTNING SPEED AND EXPOSED
TO THE WORLD
SINCE THERE IS A LITTLE CONTROL OVER SOCIAL MEDIA IT CAN
GIVE RISE TO LIABILITY FOR BUSINESS WHO ARE RESPONSIBLE
FOR THE ACTIONS OF THEIR EMPLOYEES ON SITES SUCH AS
LINKEDIN, TWITTER AND FACEBOOK
CYBER INSURANCE PROVIDES COVERAGE FOR CLAIMS ARISING
FROM LEAKED INFORMATION, DEFAMATORY STATEMENTS
OR COPYRIGHT INFRINGEMENT

10. 09PORTABLE DEVICES
COULD BE LOST
PORTABLE DEVICES MAKES IT EASY TO WORK AWAY FROM THE
OFFICE BUT ALSO IT EXPOSE CONFIDENTIAL DATA TO BE STOLEN
EASILY
A LAPTOP LEFT IN A TRAIN, AN I PAD STOLEN AT A RESTAURANT,
LOSS OF A USB STICK COULD PUT A BUSINESS IN TROUBLE IN NO
TIME
CYBER INSURANCE COULD COVER THE COSTS ASSOCIATED WITH A
DATA BREACH SHOULD A PORTABLE DEVICE BE LOST, STOLEN OR
FALL VICTIM TO A VIRUS

11. 10SMALL BUSINESSES
ARE ALSO EXPOSED
OVER A THIRD OF GLOBAL TARGETED ATTACKS WERE AIMED AT
BUSINESSES WITH LESS THAN 250 EMPLOYEES
SMALL BUSINESSES STRUGGLE WITH FINANCIAL RESOURCES
TO GET BACK ON TRACK AFTER A CYBER ATTACK
CYBER INSURANCE SMALLER COMPANIES AGAINST THE
POTENTIALLY CRIPPLING FINANCIAL EFFECTS OF A PRIVACY
BREACH OR DATA LOSS

12. REFERENCE
Affiliated Brokers Exchange Ltd, Waterloo, www.abexinsurance.com
cfc Underwriting, London, England , www.cfcunderwritting.com
US Leads World Credit Card Fraud States, www.businesswire.com, 2011
News Release, www.symantec.com, 2012
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