Cybercrime has been added to the regular damage to computer hardware and third-party liability. Review on the three categories of policies available to the company.
Please note: “all risk” and damage to office equipment may cover computer damage. However, liability against cybercrime are subject to special policies and shall be purchased separately.
In the French market for 15 years, insurance policy for damage covers computer hardware against fire and theft. The insurer covers basically expenses for data recovery fees and any additional operating costs, by paying an mount to the company that sustained the damage. Traditionally, this cover applies was under an insurance policy insurance “Computer All risks”. However, the trend is to have it included in the comprehensive “Office” Insurance Policy
In the French market for 15 years, insurance policy for damage covers computer hardware against fire and theft. The insurer covers basically expenses for data recovery fees and any additional operating costs, by paying an mount to the company that sustained the damage. Traditionally, this cover applies was under an insurance policy insurance “Computer All risks”. However, the trend is to have it included in the comprehensive “Office” Insurance Policy
British insurance companies are one step ahead their European counterparts. A few leading-edge technology players – Ace Europe, Hiscox, Beazley, Chartis, NAC – offer a policy or cover that decrease the risks of hacking and intrusion in enterprise information systems.
The “Cybercrime” insurance policy helps the company cover their liability and damage suffered as a result of a cyber-attack. “Recovery costs of lost data are a real issue. Revenue or operating losses due to this attack are also taken into account. Major brands may be asked by hackers to pay a ransom from the hacked company in order to recover the date”
Two criteria affect the risk of cybercrime. First, the size of the company database: the larger, the more exposed to hacking risks. Second, the type of data. The more sensitive, the more exposed they are to cybercrime. Thus, law firms, chartered accountants and even journalists would be specifically targeted for example.
Below are two actual cases of cybercrime with coverage we provide
Case No.1: Website Hacking
Company X creates an e-commerce website to sell their products to the general public. Its success feeds the lust of its competitors. Hackers manage to hack their site and bring it down, which means a nearly total disruption of the business. Indeed, the company sells 75% of their products online
The insurer can support the costs incurred by the consultants commissioned to identify the security flaw, and restore the website, to the cover ceiling set out in the policy. Similarly, the Insurer shall pay the company for the loss of turnover over the downtime period of the website, up to the maximum cover set out in the policy.
Case No, 2: Extortion of customer data
Hackers hijacked a customer database of a travel agency including their bank details. They request a ransom of hundreds of thousands of Euros from the management to recover this database. After two weeks of negotiation and payment of the ransom, the hacked company recovers its database.
The database was covered. The insurer mandates their consultants to assist the Insured with negotiations. It compensates the company covered against the consultant fees and ransom, within the limits of the ceilings set out in the policy.
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