The need for cyber insurance
Cyber insurance is intended to ensure that the damage caused by a hacker attack on the network is at least financially eliminated or at least mitigated. When a large-scale hacker attack paralyzed many global corporations in Switzerland in 2017, there were several millions of US dollars in damage, which were primarily caused by the production and communication processes that failed thanks to a lack of computer technology.
If a company can suddenly only work to a limited extent because the computer and server are out of order, sales immediately collapse. Cyber insurance covers various cases of damage, whereby the design of the individual service packages is individually different and can be agreed differently depending on the provider. In addition, the services for companies and private individuals sometimes differ considerably.
Conclusion: Anyone who browses the Internet must expect to be attacked. However, the risk increases depending on the intensity of Internet use and anyone who carries out all business matters, orders, account bookings and device control online, must expect major damage in the event of a hacker attack. For companies, a standstill in production can lead to damage that cannot be immediately repaired. In addition, customers and business contacts can also be damaged. Cyber insurance is therefore absolutely necessary!
Typical claims that are covered
If hard drives have been damaged by viruses or Trojans, Swiss cyber insurances will cover the costs of data recovery. This is a big difference to the insurers who target private individuals with their services, because data recovery is usually excluded there.
The rescue costs for companies are limited in the area of data loss and amount to up to 20,000 francs. However, the insurance company does not guarantee that the data will be saved.
Another service area includes identity theft. Stolen identities often lead to fraudulent transactions that can affect both businesses and individuals.
For example, credit and company cards are misused, which can result in high financial losses. However, many insurers rule out damage from online banking or mobile payment from the outset.
The area of online shopping also usually affects companies less, although they are also placing more and more orders on the Internet. Anyone who, as an entrepreneur, knows that purchasing and sales are primarily carried out via the Internet, should definitely take out insurance in this regard and include appropriate insurance protection in their cyber insurance.
Compensation or benefits in the event of personality violations are also included in the scope of services of the insurer. Furthermore, legal protection must be added, which is important at least for the initial consultation in the event of damage. Depending on the provider, a complete legal aid is included in the scope of services or the amount for this is capped.
