Updated: Oct 22, 2021
For online retailers Cyber insurance is a vital protection for your business. If you are reliant on a website or other online sales platform or a stock management/order fulfilment system any disruption or downtime is going to cost your business a significant amount of money.
Cyber Risks insurance is a complex subject but by and large most policies will cover the financial losses of the business itself and financial losses of customers or third parties, whose data has been compromised by the Cyber attack on your system financial and reputational costs if data or electronic systems have been lost, damaged, stolen or corrupted.
Cover usually includes
the cost of investigating a cybercrime,
recovering data lost in a security breach and
the restoration of computer systems,
loss of income incurred by a business shutdown,
extortion payments demanded by hackers,
and notification costs, in the case you are required to
notify third parties affected.
damages and settlements,
and the cost of legally defending yourself against claims of a GDPR breach
A real example of a Cyber attack (the information provided by the IT contractor who sorted out the issue) is an E-commerce business that had its website infected by Ransomware. The whole website was encrypted and the hackers demanded payments of $3,000 in cryptocurrency per decryption key. There were 13 keys!
The business ended up paying for 1 encryption key and fortunately their IT contractors were able to work out how to decrypt the rest using the key they purchased. It took three weeks to restore the system causing them significant loss in revenue and reputation as they were unable to make sales and for a period of time even fufil orders that had already been made!
The business didn’t have an cyber insurance but understandably following that incident they have now purchased some.
For more information or quotes for cyber risks contact www.fcinsurancebrokers.co.uk or call 0203 432 0270