9 November 2016Cyber Risk and Data Control in Recruitment: How can Cyber Insurance help?
Traditional insurance policies will respond to the physical loss or damage you might suffer while the business interruption element will compensate you for the lost profits as a result or provide a lump sum which will allow you to continue trading from alternative premises. However the key word here is “physical” – there has to be a loss of tangible assets. Your systems, electronic data and software programmes are non-physical and therefore not covered by these policies.
The emergence of new technology and also new threats has meant that the risks we face are no longer restricted to fire and burglary, but have expanded to intrusion occurring from beyond our borders. Criminal as well as plain disruptive elements are able to bring down an organisation’s infrastructure without gaining access to their premises and can often originate in a different country.
A cyber and financial crime insurance policy will protect your recruitment or resource process outsource firm against the multiple impacts of a cyber incident or data breach – and it needn’t cost the earth. This is how the policy operates:
- The breach: fast response to get a grip on the nature and scale of the incident is really important. Specialists will work with you to define the threat and start neutralising it.
- Forensics: expert assistance to define what has happened, what has been affected and what the loss is followed by understanding how best to contain the breach, restore what has been damaged or repair it.
- Legal & PR: you can spend years building up your reputation and a cyber-crime act can undermine all that hard work overnight. Cyber and financial crime insurance policies will provide specialist legal and PR/reputation management skills to limit the damage to your business and brand.
- Notifications: your policy covers the notification of those people who have been affected by the data breach alongside any damage or loss they may have experienced as a result.
- Fines & Investigation: data incidents can often mean a regulatory breach and your policy provides for the costs of regulatory investigation and the insurable fines and penalties that could result.
- Your liabilities: a sound policy will also cover the legal defence costs and potential damages resulting from data breach, malware infection, access code theft, hardware theft or loss as well negligent or accidental acts by one of your people.
What are the key insurance elements within cyber policies?
- Employers’ and public liability to help protect you against awards and legal costs associated with injuries or damage
- Data privacy liability and social media insurance to cover you for misuse of confidential or privileged data, especially via social networking sites.
- Crisis management response support to defend your brand and reputation.
- Protection against loss or damage to intangible IT assets like customer data or software.
- Consideration of the financial implications of downtime and its impact on your profitability.
- Data breach and the cash flow implications to your business.
- Protecting intellectual property assets.
- Shielding the critical value of your key clients in the event of an incident.
To find out more about our modular recruitment insurance solution and request a call back, please visit our website recruitment-insurance.ajginternational.com