Amanda, just four months on the job as the new risk manager of a large manufacturing company, was walking in a crisis management meeting with the senior management of the company. The issue was serious: the company had suffered a data breach
When she entered the conference room, heated discussions were already under way .. As she sits, Frank, general manager, turned to her.
"Amanda, IT found that we live a malware attack and a denial of service," he said. "The end result is that the virus prevents many of our systems to function. Clients can not connect to our website to place orders. The malware attack has damaged some important manufacturing equipment. We will not be able to fulfill a number of orders as promised. And this equipment may need to be replaced. Finance estimates that this will lead to loss of business income. "
"Worse," he continued, "word came out and customers are already calling to ask what we will do. The legal department has advised this can not be good for our image with the public. Last but not least, iT reported that large amounts of critical business data has been damaged. She believes they should have both the malware and attacks DoS neutralized within days, but . as the damage is done our risk manager, we want you to take it head with what should we do "
in a calm voice, Amanda said.?" I was afraid that this could be produce. That's why one of my first steps as a risk manager was to buy a cyber insurance policy with a range of covers. "She made copies of the policy and passed around everyone at the meeting.
" Our policy covers computer attacks caused by denial-of-service, and software attacks malicious. And our form provides cover for public relations expenses, loss of business income from a cyber attack, as well as systems and data restoration costs. In short, this policy should really help us mitigate the costs and consequences of the data breach. And coverage should also help us to repair and restore our systems and data corruption. I'll contact our carrier. "
Frank looked at Amanda." Well done, Amanda. That's what I call a good risk management. "
Having a cyber insurance coverage is essential for companies. In fact, a recent study shows that 50 percent of small businesses will suffer a data breach. [1] And a new report shows that the average cost of a data breach is estimated at $ 3.5 million. [2] But just buy cyber insurance is not enough. It buys good policy with good collateral! What if Amanda had bought a cyber policy that does not cover malware attacks? What if their policy did not pay for the cost to restore damaged data?
When considering a cyber insurance policy for your business, talk to your independent insurance agent to ensure that you get the necessary guarantees to treat a variety of cyber risk scenarios.
policy coverages described above are within the terms more general and are subject to the exclusions and real political conditions. For specific coverage details and exclusions of the policy, refer to the policy itself or contact an independent insurance agent.
[1] http://www.propertycasualty360.com/2014/06/18 / infographic-is-your-business-to-risk-data-brea? ref = hp [2] http://www.insurancejournal.com/news/national/2014/05/07/328512.htm
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