Entrepreneurs can insure themselves against cyber risks and the scope of GDPR

Entrepreneurs can insure themselves against cyber risks and the scope of GDPR

Not only can entrepreneurs insure property, but also against cyber threats

Many businesses use databases and the Internet in their business. Data can be considered an important part of the business and is also often stolen. There is an insurance company that offers cyber risk insurance services and even covers the scope of GDPR legislation.

Cyber ​​threats and their dangers

Companies in Slovakia and abroad face various cyber threats. Whether it is stealing databases or malicious activity. In the Norwegian aluminum factory, there was a case where attackers encrypted part of an automated computer system and production had to switch to manual production.

Both small and large companies are vulnerable

The conclusions of the European Commission's study show that cyber-attacks are not just a threat to large companies. They claim that up to 80 percent of European companies have encountered some form of cyber attack. There are different types of cyber threats, from a single laptop or desktop computer to threats to cloud computing. Small and large companies, regardless of their area of ​​focus, should be protected.

Czech Case

In the Czech Republic, there was a case when an employee in a tailoring company decided to steal a database of customers. The head of the operation filed a criminal complaint against the employee, who was on notice. Fortunately, he was insured against this risk. The insurance company reimbursed the costs of investigating the act of data theft, as well as financial losses in connection with the obligation to report a data breach.

How cyber threats can affect your business:

• loss of funds and profits;

   

• your reputation may be lost because of a cyber threat;

• third parties, liability towards them as well as financial damage may be incorporated;

   

• loss of data, customers or suppliers;

   

• endangerment of know-how and their possible theft;

   

• data corruption;

   

• the company may be affected by malware, spyware or a virus

Scope of insurance against attacks

An attacker can attack a website or e-shop, and its subsequent shutdown can cause significant financial losses. This type of risk is usually not covered. Ordinary insurance includes protection against data leaks or hacker attacks that affect systems and have impact on their operation.

What does cyber insurance cover?

There is a product that is for entrepreneurs, and that is cyber risk insurance. Self-employed persons or legal entities operating in various sectors where they have an automated management system can be insured. This includes payment terminals and electronic systems and includes entities that process personal data. GDPR requirements are also covered. Insurance also includes failure of a human factor or system.

What cyber threat insurance may include:

• Requirements of third parties or insured employee in case of violation of legal regulations.

   

• Requirements of third parties raised due to data theft, loss or destruction.

   

• Financial expenses for ransom demanded by attackers.

   

• Fixed costs and wasted profits associated with disruption caused by a cyber attack.

   

• Costs associated with recovering data and software after a cyber attack.

   

• Repayment of money associated with legal defense.

   

• Financial expenses for the protection of the aggrieved party's name.

   

• Expenditure on data protection investigations and expenditure related to data leakage.

   

• Third-party claims submitted due to a DDoS attack on third-party systems caused by malware.

   

• Third party claims for the cause of copyright infringement, privacy rights and defamation, if the insured's liability arises from his online activities.