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With the advances in technology, data has become a vital aspect of our lives/businesses. For businesses, the time for making critical decisions has reduced hence making data the foundation of decision making. Likewise, data has helped governments deliver better public policies and led to improvement of government services world over. Thus, one cannot downplay the importance of data especially for businesses and governments.

With data being this important, there is an obvious need to protect it from those who would like to steal it that is hackers. A hacker can be defined as a person who uses computers to gain unauthorized access to sensitive data with the sole aim of committing a crime. A hacker can, for example steal information to damage or bring down systems, identity theft or even hold systems hostage to collect ransom. Hence the need for Cyber Liability Insurance which covers a business against liability for a data breach in which information is exposed or stolen by a hacker who has gained access to a firm’s network.

Aon Kenya launched a cyber liability cover a few months ago and here are the features of the cover;

1. Technology Errors and Omissions

The policy is able to cover claims arising from errors in the performance of your services. It includes professional liability and unintentional breach of contract. It can include technology services, like software and consulting, or more traditional professional services like lawyers, doctors, architects and engineers.

2. Multi-Media Liability

These are advertising injury claims such as defamation, libel, slander, plagiarism and full intellectual property coverage including copyright and trademark for online or offline print media. Due to the online presence of businesses today, technology companies have seen this coverage move from their general liability policy to a cyber policy.

3. Security and Private Liability

This includes failure to protect against loss, theft, corruption or deletion of data arising from hacking, viruses, acts of employees, denial of service attacks. These can include customer files disposed carelessly, sending customer account information to the wrong email address or even loss of a laptop. Basically, all privacy breaches are covered howsoever they arise.

4. Data Recovery and Loss of Business Income Coverage

This covers the costs incurred to reinstate the systems and data that might have been lost due to a data breach. Data breaches can be caused by a virus, cyber-attack, human error, electromagnetic disturbance, programming error or a natural disaster for example flooding or an earthquake.

5. Privacy Regulatory Defense and Penalties

With the advances in technology, businesses find themselves holding a lot data on their customers and suppliers. Non-disclosure agreements and commercial contracts often contain warranties and indemnities in relation to the security of data. Loss of this data can trigger can trigger expensive damage claims. Customers are also seeking legal redress nowadays in the event that a business loss their data. All this can prove to be an expensive affair for a business but fortunately the cyber policy covers such costs.

6. Crisis Management Costs

To any business reputation is everything. Once a data breach occurs business owners need to carry out crisis management so as not to lose more business. The cyber policy takes care of this, it includes customer notification expenses, customer support and credit monitoring. The policy also covers the cost of hiring a Public Relations firm to restore the image of the firm.

7. Data Extortion

During the WannaCry ransomware attack, the hackers had a malware that targeted computers running Microsoft Windows operating system. The malware encrypted data in the computer which means you could not access it and demanded ransom payments in the Bitcoin cryptocurrency. This cyber policy covers costs incurred as a result of incidences that result in extortion and ransom.

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