Do Life Science Companies Need Cyber Insurance?
The Life Sciences industry is EXTREMELY attractive to cyber criminals. The number of Data Breaches and Hacking attacks has sky-rocketed in the last five years. Cyber Liability Coverage is now a crucial part of a comprehensive risk management strategy.
Wire Transfer Fraud (WTF) is a $5,000,000,000+ industry for hackers.
WHY ARE LIFE SCIENCE COMPANIES AT RISK?
Simple – they manage highly sensitive data, such as:
PII: Personally Identifiable Information
PHI: Personal Health Information
IP: Intellectual Property
This information must be protected while complying with industry regulations, regional laws, and privacy requirements. The cost of not protecting this data can be STAGGERING, not just in fines, but also in business reputation and loss of trust.
WHAT WILL A GOOD CYBER POLICY COVER?
Cyber/ Privacy Liability: covers the threat of a third party suing over loss of data
System Damage and System Business Interruption
Privacy Notification Costs: legal notification requirements
Cyber Crime: identity theft, threats, extortion, phishing, etc.
Multimedia Liability: IP infringement, defamation, etc.
Crisis Communications costs: a PR firm to consult in a time of need
5 Reasons Why Life Science Companies Needs Cyber Insurance
The internet means that your business is now exposed to the world’s criminals and is vulnerable to attack at any time of the day or night. Phishing scams, identity theft, and telephone hacking are all crimes that traditional insurance policies do not address. Cyber insurance can provide comprehensive crime coverage for a wide range of electronic perils that are increasingly threatening the financial resources of today’s businesses.
All businesses rely on systems to conduct their core business, from electronic point of sales software to hotel room reservation systems. In the event that a hack attack, computer virus or malicious employee brings down these systems, a traditional business interruption policy would not respond. Cyber insurance can provide cover for loss of profits associated with a systems outage that is caused by a “non physical” peril like a computer virus or denial of service attack.
Most businesses would agree that data or information is one of their most important assets. It is almost certainly worth many times more than the physical equipment that it is stored upon. Yet most business owners do not realise that a standard property policy would not respond in the event that this data is damaged or destroyed. A cyber policy can provide comprehensive cover for data restoration and rectification in the event of a loss no matter how it was caused and up to the full policy limits.
Any business lives and dies by its reputation. Although there are certain reputational risks that can’t be insured, you can insure your reputation in the event of a security breach. When your systems have been compromised, you run a risk of losing the trust of your loyal customers which can harm your business far more than the immediate financial loss. Cyber insurance can not only help pay for the costs of engaging a PR firm to help restore this, but also for the loss of future sales that arise as a direct result of customers switching to your competitors.
PORTABLE DEVICE BREACH
The advent of portable devices and the ability to work away from the office has made life a lot easier for many of us. However, this new style of working also means that important and confidential data can be stolen or lost much more easily. A laptop left on a train, an iPad stolen in a restaurant, or a USB stick going missing are all good examples. In addition, the devices themselves are being targeted with a growing number of viruses being built just for them. Cyber insurance can help cover the costs associated with a data breach should a portable device be lost, stolen or fall victim to a virus.