Tag: "cyber liability"

Top Cyber Insurance Companies – Hiscox

Hiscox have managed to establish themselves relatively quickly as probably the market leader in cyber liability insurance, in part based on the policies they provide, in part on the resources and risk modelling they help with, and in part on the existing customer base which has a high focus on small business and various types of liability insurance.

All these areas are hugely important regarding cyber insurance. The scale of cyber security and related risks is almost  so big that it is virtually impossible to comprehend. As such, as Warren Buffett recently pointed out, many insurance companies do not want to enter the market because it is so difficult to determine levels and cost of risk.

What Hiscox have done is essentially to build on that existing customer base, and the reputation they already have, to advance what is both an insurance policy in terms of financial indemnity, but also to provide a risk management process that actually deals with the realities of any data breach of cybercrime.

Hiscox Customer Base

While Hiscox may be active in many areas of insurance, one of their main areas of focus is on small businesses and related liability insurance. This focus brings together a significant number of what could be termed niche areas of business, but which all share common liability threats.

These liability threats could be around general business liability, public liability insurance, e and o insurance,  product liability insurance,  employers liability insurance etc. Whilst every business is different, they have a thread of similar needs that means these types of liability insurance can be both general and specific the same time.

What this has allowed Hiscox to do is to develop specialist insurance policies that in fact can be targeted at very specific industries and professions.

This has given them a fairly unique access to understanding the needs of a variety of different trades and businesses, which they have been able to very successfully build on in understanding the needs that relate to cyber insurance, for every type and size of business and organisation.

Hiscox Cyber Insurance Policies

Cyber insurance policies can vary quite widely in terms of the level of coverage and the cost of accessing them. What Hiscox have done  in terms of coverage is to provide what is pretty much a gold standard as to how a data breach claim should be dealt with.

This means that aside from any financial indemnity that the policy provides, the policy also provides a working incident response team, which can help manage both the immediate and longer term realities of what a data breach involves.

In practice this means that a Hiscox insurance policy will provide access to a team of selected individuals and companies who can manage a number of areas of the claim. This can include IT specialists, lawyers, PR companies, financial analysts  etc.

The work of this team will revolve around dealing with and paying any ransom that may be demanded, restoring  the integrity of an IT system, dealing with any reputational damage that the company or business may suffer and notifying and dealing with any registry bodies may need to be notified of the breach.

The team should also include specialists who can forensic examine and come to understand the reasons for the data breach, and put in place systems to make sure it does not occur again once the integrity of the IT system has been restored.

The insurance policy should also provide some type of business interruption insurance until the IT system and the business itself is up and running again as per its normal practice.

In addition, the policy is likely to provide help for individuals with information has been accessed unlawfully, such as providing access to credit monitoring systems in relation to identity theft.

Cyber Security and Risk Management

Hiscox offer a significant number of tools and resources to both potential customers, and signed up clients, which give them a significant amount of advice regarding risk management of cyber security. There are two particular reasons this is done.

One is simply that everything a company can do to reduce its risk exposure to a cyber security threat reduces the likelihood of a claim under its either insurance policy. This should be good news for everyone in terms of reduced levels of claims exposure for the insurer, and hopefully reduced costs by way of premiums and deductibles for the company or business being insured.

The other reason is that it creates a level of trust around the insurers ability to understand the security risks at how best to deal with them.

Cyber insurance is a fairly new type of specific insurance policy, and part of its growth and appeal is the fact that insurers like Hiscox  are very active in taking the lead to help companies understand the nature of cyber security risks, and how best they can be managed.

Many companies and businesses of all sizes are still to an extent in the dark on the reality of cyber security risks, either through complacency or lack of resources.

Providing risk management assistance allows Hiscox to gain a foothold on virtually any companies radar, and to be able to build on it by way of providing cyber insurance policies if and when needed. It becomes a self-fulfilling loop that should in theory benefit both sides of the industry.

Public Liability Insurance and Cyber Security

Sometimes the very words Public liability Insurance make anyone involved in any business or organisation slightly nervous.

Many people think they don’t need any public liability insurance unless they are simply something like an events company, or where the nature of their business means they might potentially  have some contact with the public, and in certain cases need to have public liability insurance.

The issue of what type of business or company needs public liability insurance  will probably depend on who is paying for it, and whether or not they consider it a risk that they are willing to bear themselves, or whether they had been burned in the past and understand the need some type of insurance.

It is equally true that a number of  insurance companies and insurance brokers  will sell the need for public liability insurance when it is questionable whether it is really needed But all types of insurance that are not legally mandated will be taken out by individuals or businesses either because they have had a loss in the past, or they sufficiently open to recognise the need for it.

Where the issue of public liability insurance becomes much more relevant in some ways is the whole area of cyber security and cyber risk.

Any individual or business which holds information about themselves or any member of the public is potentially at risk of a data breach, which could result in some type of cybercrime involving the theft of information relative to a wide range of different individuals.

PUBLIC LIABILITY INSURANCE

The nature of cybercrime and the need for some type of cyber liability insurance has mushroomed in the last few years, and is likely to grace the in the next few What is perhaps important to realise is that a significant number of insurance companies recognise the risk of cybercrime and the issue of cyber security generally, and specifically exclude it from different types of insurance policies.

These may well include public liability insurance policies, which an organisation or business may believe gives them the cover they need in the event of some type of data breach of cyber crime.

There is a need for businesses and organisations of all sizes to recognise the real risks and threats of cybercrime and cyber security, and to have specific clarification whether or not their existing public liability insurance policies, or domestic household policies, or any other type of commercial liability insurance by that includes or excludes cyber insurance risks.

If in any doubt, the individual or business should take out a specific cyber insurance policy, which may well become a much more normal feature of the insurance world in the next few years, as insurance companies move to limit their potential liability under existing types of commercial liability insurance policies. T

What is Cyber Liability Imsurance?

The need for some type of cyber liability insurance is recognised at a level by businesses and organisations, but has yet to become widespread in terms of an understanding of the real needs and risks of cyber security and cybercrime.

Many individuals and businesses who are at risk of some type of cyber crime either believe the risk is minimal, the real risk relates to other people or that they are already covered under some type of commercial liability insurance, or their own domestic household insurance.

The extent to which an individual or business is covered under their normal commercial or household insurance policy is highly debatable, and could be an area of real concern if any potential claim arises.

For people who don’t believe there is a real risk of cyber crime to them or their business, they could be right or they could simply be living in  some type of cuckoo land.

The need for some type of cyber liability insurance, is often referred to simply as cyber insurance will  obviously depend to an extent on the nature of the business or the individual concerned, but they should nevertheless be an understanding of what the real risks are, and whether they can be self managed or whether some type of cyber liability insurance is needed.

The nature of cybercrime and cyber security means that any individual or business with any type of network of computers or smart phones is potentially at risk.

CYBER LIABILITY INSURANCE

A data breach can be either digital or paper, or a combination of both Such a data breach that she always includes theft of information which is then used in a number of ways to commit some type of crime fraud against the business or organisation, which can also involve either its  employees or its customers.

Such cyber crime or fraud can relate to financial information or products, or simply people’s money, but can also have a much more widespread and devastating effect in numerous ways depending upon the nature and scale of the business or organisation involved.

Cyber liability insurance can provide a wide range of different solutions, both financial and practical in the event of some type of cybercrime or data breach occurring. it is a good idea to research what type of site that liability insurance policies available, and keep a close eye on what insurance products become available in the future.

There is a growing sense that cyber liability insurance is in its infancy, and the need for it will grow massively over the next few years. T