In recent years, various cyber-attacks, unfortunately, have become more and more common, and it is estimated that in the coming years, most companies and businesses in Israel and the world will have to deal with such attacks. A report by the NIST, the American National Institute of Standards and Technology, also supports this approach and advises taking an approach that assumes that the attack is only a matter of time.
The damages from those attacks can reach very high amounts. According to a report by the global business consulting company Accenture, in 2021, these damages were estimated at over 6.9 billion dollars. Experts believe that the amount of damage will only go up in the years to come, and the damage can be spread over many areas: the business, technology, customers, and the reputation you have built for yourself over the years.
Considering this, the importance of managing a cyber incident, which includes, among other things, early assessments for a wide variety of scenarios that may occur at the time of the attack, is critical and very significant. One of the main ways to make such assessments is to purchase insurance that covers the various scenarios that may accompany the cyber incident.
What is Cyber Incident Management and What Does it Include?
The management of a cyber incident begins with the organization’s information security manager and his team. To the extent that there are procedures in place for cyber incidents and incidents, the CISO in the organization knows at the time of the incident to give an accurate picture of the situation. Has information been stolen? Is this a ransomware attack? Are these major damages to the organization?
The company submits this assessment to its local and international insurance broker, and he submits the insurance claim for it. From the moment the incident happens, and the damages are estimated, the claim begins to be clarified with the insurance company, and the damages are also estimated more accurately.
Which Insurances Cover the Management of the Cyber Incident?
A cyber incident includes the potential for significant damage, both to the company and to its customers, suppliers, and other third parties. For coverage and giving the company the opportunity to conduct itself with peace of mind and without fear, Lamda currently provides a variety of insurances that help you manage the cyber event in the best way: intellectual property insurance, cyber insurance, officers’ and directors’ and officers’ insurance, professional liability insurance and more.