Not only is cybercrime on the rise in South Africa, but South Africa has recently proudly claimed the sixth spot on the FBI cybercrime predator list. This means that the majority of cybercrime is no longer occurring from predators abroad, but they are now on our front doorstep. Sadly, due to the complicated nature of these technological crimes, the victims of these crimes rarely recover their losses – a staggering 79%. These victims range from individuals to small businesses and big corporates.
That is why insurance companies had to start addressing this issue by offering cybercrime insurance policies. The losses a company or individual faces can extend far further than instant monetary losses. Losses can pertain to:
- The costs of re-collecting and replacing data
- Expenses regarding employee overtime needed
- The costs of renting equipment and services
- Expenses regarding crisis management
- Income loss relating to system unavailability and downtime
- Revenue loss
- Litigation costs arising from compromised data
- Losses incurred due to the loss of a competitive edge
- Losses incurred due to reputation damage
As with most insurance policies, there are various options to choose from. So why do you need coverage against cybercrime?
- Cybercrime is on the rise with no sign of slowing down any time soon.
- If your business holds sensitive data of any nature you will be at risk.
- Shocking statistics show that most cybercrime is committed by employees. So any business with a payroll is at risk.
- If any third party data that you were responsible for is compromised, you can be held liable.
- Almost a third of all South Africans are victims of cybercrime during their lifetime.
- Technology advances at such speed that individuals, companies and even authorities struggle to stay on top of new risks and how to respond to them.
- It is impossible to budget for such a security breach or the impact it can have on your life. With the correct insurance you can rest assured that sudden and unplanned costs will be covered.
- Normal insurance policies rarely cover the extensive losses that incidents such as a security breach can cause.
- Cybercrime coverage does not only offer monetary restitution, but also allows for much needed resources (that can become very expensive) that you need at the time of such a breach.
- Cybercrime policies cover both losses incurred from personally identifiable data as well as corporate information.
Cybercrime requires specialist insurance cover with a trusted advisor who can support you during a very difficult time that requires fast and effective action. For more information regarding cybercrime insurance, contact APBCO Brokers.