Who needs cyber insurance?
Who needs cyber insurance?

Attacks on Swiss companies’ digital infrastructure are rising from year to year. Small and medium-sized enterprises in particular are being increasingly targeted by cybercriminals as they have less money to spend on IT security than large corporations.

However, protecting against the risks associated with digital technology is in the interest of every business that operates in the digital world, processes sensitive customer data, or depends heavily on reliable access to data and IT infrastructure. Cyber insurance represents an important step in the right direction. Visit; kuv24-cyber.de

What is Cybercrime?

Cybercrime is a criminal activity that makes use of information and communication technology. It can take place anywhere where people use Internet-connected information and communication technology such as computers, smartphones, and other devices, for example in companies or government offices, in the home, or on the move. 

It is especially dangerous because the perpetrators can strike at virtually any time from anywhere in the world and can easily cover their tracks. There are lots of different kinds of cyber attacks, from stealing confidential data to infecting private or corporate computers with malicious software (malware for short), for example by means of spam e-mails. Whatever their nature, cyberattacks have the potential to cause huge losses.

Example of a claim

Despite having the latest security software installed, a small business’s entire IT infrastructure is infected with viruses. Some of its data are deleted, and some are corrupted. The operating system and applications have to be reinstalled, and the data backups have to be rolled back.

The system remains down for several days, making it impossible to serve customers, so they switch to a rival firm. AXA covers the cost of data recovery as well as the loss of income arising from the interruption to normal business.

What damage does cybercrime cause?

From business interruptions to theft of critical data and lasting damage to a company’s reputation, the scope of cyber risks and the damage they can cause is broad.

Financial damage: Financial consequences of hacker attacks include loss of income as a result of the normal business being interrupted and high costs for recovering lost or stolen data.  When these affect a company’s competitiveness or even its share price, they can quickly threaten its very existence.

Damage due to data protection violations: Anyone who stores or processes customer data is legally obligated to protect them. If data protection is compromised and sensitive data are disclosed or misused as a result of a cyberattack, the company concerned could face legal and regulatory sanctions.

Companies with business relationships in other European countries must also comply with the more stringent requirements of the EU’s General Data Protection Regulation (GDPR). 

Reputational damage: If a company is negligent in its handling of the theft or loss of data, this can affect the extent to which it is trusted, perhaps even to the point where it loses customers and business partners. Winning them back can be very hard work.

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