The smart CFOs guide to cyber

Most responsible businesses today know that it is not if but when they become a victim of a cyber attack.

But no matter how much you invest in cyber security, your business isn’t truly safe from cyber-attacks until you’ve got proper cyber insurance.

Cyber insurance can help your business to cover the costs, expenses and liabilities that arise from data breaches, data extortion, business interruption and other cyber security threats.

Understanding what exactly cyber insurance is, everything it covers and why it’s so important could protect your business from serious cyber crimes.

What is cyber insurance?

Cyber insurance is fast-becoming the most essential of insurance products and helps to protect businesses from the costs and liabilities of cyber threats. No two businesses are the same, which is why good insurance providers offer tailored cyber insurance packages that suit the needs of each individual client. Depending upon your needs, your cyber insurance can protect your business from the costs, expenses and liabilities that arise from:

Breach of privacy or breach of confidentiality
Data breach
Regulatory fines or contractual damages
Cyber liability
Business interruption
Data extortion
Problems with an outsourcer
Costs of restoring data
Costs of minimising reputational damage

Cyber insurance can come in a huge variety of packages, and it’s always important to check what your policy covers before you sign. Consider the wide range of cyber threats that your business is vulnerable to and make sure that your policy covers them all.

Why cyber insurance matters

Cyber insurance is the only way to make sure that your business is fully protected from the risk of a cyber attack. Cybercrime cases and data breaches are increasingly becoming a major threat to businesses in every industry, which is why more and more CFOs are choosing to protect themselves with cyber insurance.

To understand why cyber insurance matters, let’s consider some of the scenarios that could occur if (when) your business suffers a cyber attack:

Your network or cloud is hacked and you must notify customers and all other parties of the breach – what would that cost?
A malware attack interrupts your operations and leaves a hole in your revenues
You have to reconstitute valuable data that’s been stolen or corrupted – can you put a figure on that?
The data regulator fines you following a breach
Your board is sued for lack of diligence in cyber security

In each of these cases, the only way to protect your business from potentially bank-breaking costs and liabilities is through cyber insurance. No matter how much you invest in information security systems, where humans are involved, there are opportunities for manipulation and deception: all it takes is a memory stick of confidential data dropped in a public place.

The benefits of cyber insurance for businesses

Investing in reliable, transparent cyber insurance – tailored for you by La Playa – can help your business shore up its defences against inevitable incoming cyber attacks. We partner with insurers who understand the risks specific to tech and digital industries, so you can benefit from expert advice to make smart decisions for your business.

The benefits of working with La Playa on your cyber insurance include:

Specialist, high-performance insurance that’s tailored to your business
Professional advice and guidance when you need it
A team of experts beside you in a claim
Seamless protection across UK and US operations

The popularity of cyber insurance has skyrocketed since the introduction of GDPR in the EU and CCPA In the US, and the pandemic has only intensified the risk. Strict data regulations across the globe mean that companies have greater obligations to protect their data than ever before – and with these obligations come very real risks.

Cyber insurance isn’t a replacement for cyber security: as a modern business operating in a digital marketplace, protecting confidential data is the obligation of all decision-makers, and indeed a governance issue for boards. But, despite most businesses investing heavily in cyber defences, successful cyber attacks still happen every day.

Cyber insurance can provide businesses with an extra level of security and peace of mind in the face of the ever-changing landscape of digital security. You can’t always stay one step ahead of cybercriminals, but you can shore up your defences just in case.

Making the most of your cyber insurance

Make sure you get the most out of your cyber insurance with our three top tips for choosing a comprehensive cyber package that gives genuine value:

Ask for ‘flexible loss’ cover to insure across all risks and enjoy greater overall protection at a better price
Include ‘crime insurance’ to give financial protection for the theft of money via phishing scams and telephone hacking
Watch out for retro-active policy wording, because data breaches can take months to surface

Why choose La Playa for your insurance?

La Playa is backed by leading global technology insurers and our specialist team will design an insurance program for your organisation that provides comprehensive protection at sensible prices.

Flexible and efficient, we combine personal service with expert advice – the perfect partner to guide you through the complex and ever-changing risks your enterprise will face.

La Playa’s insurance experts offer advice you can trust from people who understand your business, with:

tailor-made insurance & risk control programs
exceptional personal service & advice
due diligence and best practice, as standard
advocacy during your claim
transatlantic capability

Experience best of breed insurance policies, the La Playa way.

Get in touch with La Playa: Insurance with Intelligence

La Playa is a specialist insurance broker offering an intelligent approach to insurance for clients in the creative, digital and tech industries as well as for high-net-worth individuals.

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