Cyber Insurance
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What is Cyber Security Insurance?
Data breaches and other cyber attacks can adversely affect your business operations and also cause third-party losses resulting in legal claims. A cyber insurance policy provides coverage for both kinds of financial losses incurred by your business.
What is a Cyber Attack?
Cyber attacks can be targeted at individuals as well as the technology infrastructure of a nation. This is done by finding glitches in a computer system or network and then exploiting them to make the desired changes.
Importance of Cyber Liability Insurance in the UAE
Cyber Insurance UAE is critical for modern businesses that depend on digital technologies. The Internet has made it very easy to start and run any business. But the business is always vulnerable to cybercriminals who can gain access to your confidential data and disrupt the operations. A large number of cyber attacks are also committed by insiders/employees with ready access to sensitive information.
Cybersecurity insurance has also become more important with the enactment of the data protection law in the UAE. The policy protects your business against financial losses due to data breaches and legal claims from third parties.
Types of Cyber Insurance in the UAE
First-Party Coverage
First-party coverage protects your own business against losses due to unforeseen cyber incidents. This includes the following events:
1. Data Breach & Privacy Protection
This provides compensation for losses arising due to data breaches such as investigation, notification, and credit monitoring costs.
2. Business Interruption
This protects the business against financial losses due to business disruption resulting from a cyber incident such as ransomware or denial of service attack.
3. Cyber Extortion
This provides protection against malicious acts of cyber extortion, such as ransom demands.
4. Media Liability
This provides protection against any liability arising due to content published on websites, advertisements, and social media posts.
5. Network Security
This covers the losses arising due to the destruction of computer systems or data due to cyber attacks such as virus or malware attacks.
Third-Party Coverage
This protects the business against lawsuits & legal claims arising due to a breach of data related to a customer or any other third party. This includes the following events:
1. Network Security Liability
This provides compensation for losses arising from a cyber incident caused due to a third-party network security failure.
2. Privacy Liability
This provides protection against any liability arising due to privacy violations, such as unauthorized access to private information.
3. Media Liability
This protects the business against any liability arising due to the publication of content on websites, advertisements, and social media.
4. Fines & Penalties
This covers the cost of fines & penalties imposed by regulatory authorities due to cyber incidents.
5.Litigations & Settlements
This provides compensation for legal costs and settlements of lawsuits associated with cyber incidents.
Why Do I Need Cyber Risk Insurance?
The business is fully protected against cyber threats with a comprehensive cyber insurance policy
The cyber insurance policy compensates for the revenue loss caused by business interruption after a cyber attack.
Cyber risk insurance facilitates fast business recovery as it shields the company against sudden & malicious cyber-attacks.
The policy covers the expenses arising due to legal claims filed by third parties. This includes both the settlement costs and the legal fees paid to defend the claim.
Cyber insurance can help your company to effectively manage a crisis and protect its reputation following a cyber incident.
What does Cyber Liability Insurance Cover?
Cyber liability insurance covers the following expenses & losses:
- Direct expenses & losses due to cyber-attacks such as ransomware, malware, phishing, spyware, etc
- Business interruption loss caused by the suspension of business operations due to cyber attacks
- Legal claims arising from third parties due to data breaches and failure of network security
- Legal expenses incurred to defend such claims in a court of law
- Forensic costs to investigate the cause of a breach and prevent further cyber incidents
- Cyber extortion insurance to counter the threat of cyber attack by an outsider
- The cost of restoring and safeguarding the data lost or destroyed by cyber attacks
- Media & PR expenses incurred by a company to protect its image & reputation after a cyber attack
- Fines & penalties payable due to data breaches and network security failures
What does Cyber Liability Insurance Not Cover?
The general exclusions of cyber insurance coverage are as follows:
- Physical damage to hardware and electronic equipment
- Cost of updating the internal technology & systems, including any software & security upgrades
- Non-compliance with applicable laws, rules, and regulations
- Loss due to engaging in criminal and unlawful activities
- Loss of money due to phishing attacks
- Loss due to war or any act by the government
Who Should Have Cyber Risk Insurance?
Organizations that are highly vulnerable to offensive cyber attacks.
Companies that depend on the Internet or digital platforms for their business operations.
Any organisation that deals with sensitive information.
Any business or organization that comes under the purview of stringent data protection laws & privacy regulations.
Any organization that is liable to suffer damage to its image and reputation due to data breaches.
What are the Common Risks in Cyber Risk Insurance?
Data Breaches
Data leaks, data losses, and damage to data can cause huge financial losses and ruin your reputation.
Network Failures
Businesses that are driven by technology face a high risk of network failure due to a weak network system.
Business Disruption
A business can suffer heavy losses due to unexpected interruptions in their regular operations.
Third-Party Claims
Compensation is payable to third parties, such as customers & vendors, if they file legal claims for damages following a cyber incident.
Cyber Extortion
Cybercriminals can demand money to avert a cyber attack on your business.
Fines & Penalties
Regulators may impose fines & penalties on your business for failing to ensure data & network security.
Factors Affecting the Cost of Cyber Insurance Policy
Size of the Business
Larger businesses with more employees have to pay a higher premium to cover their risks.
Data Type
Businesses that deal with sensitive data such as financial and health records carry higher risks and hence need to pay higher premiums.
Sum Insured
You need to pay a higher premium to get higher cyber insurance coverage for your business
Security Measures
Businesses that adopt advanced cyber security solutions can lower their risks and pay a lower premium.
Deductibles
A deductible is an amount that the policyholder pays before the insurer pays for the expenses. Higher deductibles help to lower the insurance premiums.
Claims History
The insurance premiums are higher if you have made repeated claims in the past.
Features & Benefits of Cyber Insurance
Cyber insurance provides first-party coverage to protect your business against cyber attacks and third-party coverage to compensate for legal claims arising due to data breaches.
The policy covers the financial losses suffered due to business interruption after a cyber attack.
A data breach insurance policy also pays for the expenses of restoring and safeguarding data after a data breach.
Cyber insurance covers all the expenses related to crisis management and public relations exercises required to maintain the company’s reputation.
Cyber insurance covers the expenses of undertaking forensic analysis to investigate cyber attack incidents.
The policy also reimburses the fines & penalties imposed by the regulator for data breaches.
Why do You need to Buy Cyber Insurance from Prominent Insurance Brokers?
A top insurance broker in the UAE with a track record of 20+ years in the insurance sector.
Offers comprehensive & customized cyber insurance policies designed to meet all your requirements.
Personal guidance by a professional team of insurance experts to help you choose the best policy.
Over 5,000 business insurance policies sold and 6,000+ claims settled successfully.
Value-added services and attractive discounts on premiums ensure the best deals and huge savings for policyholders.
Fast settlement of claims by a dedicated claims management team.
Partnerships with leading insurance companies in the UAE.
Frequently Asked Questions on Cyber Insurance
Every business with a website and online presence is vulnerable to cyber-attacks. So it is beneficial for small businesses to buy cyber insurance.
No. A cyber insurance policy does not reimburse the loss of expected or potential profits in the future due to a cyber event.
Yes. Cyber insurance coverage is available even if your own employees are responsible for the data breaches.
Yes. It is always recommended to have adequate cyber security measures, such as anti-virus, firewalls, backups, etc, to safeguard your data. Cyber insurance cannot be a substitute for these tools. But you may get a discount on your insurance premium if you have taken these security measures.
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Disclaimer
The cyber insurance policy or plan may have limitations, exclusions, and other terms & conditions that may affect coverage. It is important to carefully review the policy wording before making any decision.