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Data Breach or Cyber Security Insurance

What is data breach or cyber security insurance?

Data breach refers to the loss of data from an organisation. For example, hackers may steal customers’ personal data from your website or data base.

In a data breach, your customers or third parties may sue your business for failing to provide proper cyber security. The government regulations may also impose penalties and fines, and you are responsible for cleaning up costs to reduce the damages involved.

Also, the loss of data from your companies may reduce your potential marketing and revenue losses in the years to come. This is an expensive event that will haunt your companies for a long period of time.

  1. Data breach investigation and forensic costs
  2. hardware or software damage costs
  3. government fines and penalties for cyber breach
  4. lost revenue from loss of data or business
  5. lawsuits from third parties for losing their data to malicious groups
  6. Amount incurred for helping third parties with their data losses

Do I need data breach or cyber security insurance in Singapore?

As long as you have a digital presence or collecting your customer data, you would be hard-pressed not to need this policy. It is quite common now, with hotels, booking sites, ecommerce websites to be breached and their customer data sold to malicious group. Many such hotel chains have lost their reputation and soured their relationships with longstanding customers. Several ecommerce groups were liable to government fines and legal compensation to their customers.

Every business is moving into digital space not just to get more profits, but to survive in this new age. This is where cyber security coverage is most important for new arrivals to the digital age.

What is the difference between data breach insurance and cyber security insurance?

Data breach insurance covers you from data breach or data losses from your business. It may include some form of network problem issues and cyber business losses. Data breach can also be known as cyber liability coverage.

Cybersecurity insurance sounds more comprehensive and covers widely on cyber protection over your assets, software, and hardware. However, because these insurances are relatively new, most insurers use the policies cyber securities insurance and data breach insurance interchangeably.

To be clear that you are getting the correct policies that you want to be intended for your business scope of operation in cyberspace, do speak to a properly trained adviser that understands cybersecurity insurance or data breach insurance.