Cyber Insurance in South Africa

The very nature of the internet and increase in the digital world of the web, means that cyber criminals from anywhere in the world can direct their attention to specific targets. Therefore, every organisation that has a network, an online presence and holds or accesses confidential data, is at risk for a cyber (i.e. digital) breach and/or attack.

Cyber Liability Insurance - it can mitigate your liability for risks, associated with the cyber environment.

Why Cyber Liability (or 'Anti-Hacker') Insurance:

South Africa has not been immune to the risk of cyber crime – it has cost companies a couple of billion rands recently. Cyber-attacks can take place in the form of ransomware which encrypts (i.e. scrambles) all information on the computer, rendering it useless and causing business outages. Regardless of size or status, no business is safe from hackers.

Criminal activity, including cyber hacking, has been on the rise in South Africa and internationally and these range from Distributed Denial of Service attacks, to the hacking of social media accounts. Ransomware or also known as malware, encrypts ('scambles') all information on the computer, rendering it useless. In order to decrypt (i.e. unscramble) the information, a ransom is usually extorted from the user.  These attacks can have devastating effects on society, and businesses and individuals need to protect themselves against the consequences of cyber crime with comprehensive cover.

To protect a company from these risks, a good Cyber Insurance policy needs to cover first party expenses, taking into account the actual costs of re-collecting and replacing data, as well as the expenses related to employee overtime, rented external equipment and services - to name a few. Additionally, the policy has to cover loss of business income, the notification expenses incurred to comply with privacy legislation, any crisis management expenses and possibly regulatory fines and penalties. 

Organisations that have experienced breaches of data security, can testify that cyber crime relates to more than just the loss infrastructural capacity. This is a real criminal activity which can lead to extortion, fraud and forgery – as well as impact the sustainability of a business.

Cyber Liability (or Anti-Hacker) Insurance can mitigate your liability for risks, associated with the cyber environment.

DIB Solutions (Pty) Ltd have partnered with reputable underwriters and various insurance companies in order to assist our clients with appropriate Insurance cover – we can therefore also assist clients with tailor-made products (where applicable) at competitive premiums. We provide a professional and personal service, as well as build long-term relationships with our clients. Discuss your individual needs with one of our experts – if cyber security is properly managed with the right insurance cover, businesses and individuals can be safe out there..

Also note some of the risks individuals and companies are exposed to:

  • System unavailability and downtime; 
  • Business being held to ransom;
  • Loss of revenue;
  • Loss of data;
  • Reputational damage and costs associated with reducing the impact of a breach;
  • Loss of competitive advantage;
  • Industry and regulatory fines and penalties; and
  • Litigation arising from compromised data. 

Organisations should be concerned about cyber risk if they:

  • Gather, maintain, disseminate or store private information;
  • Have a high degree of dependency on electronic processes or computer networks;
  • Engage vendors, independent contractors or additional service providers;
  • Are subject to regulatory statutes;
  • Are required to comply with Payment Card Industry (PCI) Security Standards/Plastic Card Security statutes;
  • Are concerned about contingent bodily injury and property damage that may result from cyber incidents;
  • Rely on or operate critical infrastructure;
  • Are concerned about intentional acts by employees;
  • Are a public company subject to the ePrivacy Directive Notification Requirements.

Cyber Liability Insurance products may cover the following:

  • Hardware theft;
  • Insurable fines that must be paid to a regulator, government authority for breach of data protection laws;
  • Multimedia liability, Data extortion, Security & privacy liability, Crisis management costs (including customer notification, support and credit monitoring), Technology, Legal consultation, Identity monitoring for victims of breach, Expert consultation – including IT risk management, and Digital forensic investigation;
  • Reimbursement for costs attached to repair of reputational risk;
  • Theft of access codes from the premises, employees, or computer system.

Also consider cover for:

  • First Party:
    • Data recovery and business interruption: Provides coverage to respond to a loss of income and operating expenses experienced due to a network security breach. This will cover the expenses of specialists, investigators, digital forensic auditors, or loss adjusters as well as cover the cost of restoring or recovering data and operations, or costs incurred until it is established that data cannot be recovered or restored. 
    • Crisis management & notification expenses: provides coverage for costs of responding to a security failure or privacy breach. These response costs could include notification expenses, the cost of providing credit-monitoring or other remediation services to customers or impacted third parties as well as service providers that specialise in crisis management and public relations. 
  • Third Party:
    • This would include coverage for third party claims due to the failure of the insured’s network security or the insured’s failure to prevent unauthorised access to personal information.
    • Associated regulatory fines and penalties to the extent insurable by law, could also be covered.

Please contact us today for fast, friendly, professional advice and service!

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