Cyber liability insurance guarantees compensation to an organisation in case of a cyber attack/data breach. It covers a company for any costs and financial damages incurred and can include legal fees, client notification costs, and loss of business income. Third party coverage provides for damages to clients or customers and can include defense costs, damages, settlement costs, and money to cover fines.
According to AON Kenya during the launch of its Cyber Enterprise Solution in September, its very crucial that a business whether small or large is covered by this type of insurance as it could be the difference between recovering and staying in business or closing down due to devastating losses or perceived unreliability in the eyes of a customer.
Particularly troubling are recent reports of serious attacks in which at least 19 companies in Kenya were hit by the WannaCry virus attack that affected more than 300,000 users in about 300 countries. The destructive malware was planted in such a way that it locked files in a computer and instructed users to pay $300 in Bitcoin to free them.
This cases demonstrates the expanding tempo and complexity of cyber intrusions across the world.
Seeking to limit their losses following the attacks, most organizations are increasingly pursuing cyber insurance according to Aon Kenya Chief Executive Officer Sammy Muthui.
Recovery from data breaches is very costly, resource consuming and highly disruptive process. There is a cost for protection, of mitigation, of recovery, of layering in additional defenses, and of dealing and complying with a highly complex legal and regulatory privacy landscape. Beyond hard costs, there is a growing fear of reputational risks and brand damage, the impact of which crosses into the critical areas of customer loyalty, operational dependability, even organizational viability.
Sammy noted that the cyber liability insurance policy will provide your company as well as your clients with the assurance that everyone affected will be well compensated in the event of a data breach. The solution is tailored according to each company’s needs.
Related;
What’s the actual cost to a business of a data breach?
AON Kenya Unveils Industry-First Cyber Insurance Solution
