Many firms have experienced a cyber-attack and larger companies, particularly those in the USA, have experienced them more frequently.  The expectation is the scale of these attacks will only increase. 

Cyber-attacks can impact all companies so it is essential measures are in place to detect and prevent the attack and a suitable level of risk cover is I place should an attack get through the defenses and so minimise the impact on the business.

Companies invest significant amounts of time and resources on prevention and detection technologies to prevent and repel cyber-attacks and so ensure the security of their electronic data and systems, however, some attacks succeed.  Research has shown the direct cost to companies of these attacks range from under €1,000 to over €500,000 and a news article in 2019 reported on a Scandinavian company where the cost ran into the multiple millions.  As well as direct financial loss, companies may also suffer from brand and reputational damage as well as litigation for the loss of data. 

In summary, the financial impact on a business can be significant.

In response to the emergence and increasing activity of criminal cyber activity many insurers have removed it out from the traditional insurance covers or have placed restrictions on how it can apply.  It is therefore important clients look at cyber as a separate risk and work with their advisers to make sure the correct levels of cover for their business are in place.

WING member brokers keep up to date with the ever-changing cyber risk landscape and work closely with insurers to make sure you can receive the correct advice on the rick covers you need and the support to call upon should you be effected by a cyber incident.