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Covid-19’s impact on the growing application of cyber risks insurance

Covid-19’s impact on the growing application of cyber risks insurance

The new strain of coronavirus has shaken the world and spread in most of its countries. The sanitarian outcome is appalling and the economic consequences are likely to be extremely severe.

The unprecedented diffusion of the virus has forced governments to swiftly react with self-isolation and social distancing measures. Such isolating practices have left many companies with no choice but to have their employees continue working within the safety of their homes.

With offices closed, unsafe commutes and physical interactions being restrained, a temporary digitalization of the economy has sprung. While the primary sector of the economy has been less impacted for inherent reasons, the rest of countries’ sectors have enforced “work-from-home” policies to maintain their activities while betting on their employees’ safety.

In this article, we will shed the light on the economic digitalization, what it will change regarding insurance policies and how can BLACAZ help your company with cyber risk insurance.

A temporary reaction for an ever-lasting digitalization

Many businesses such as restaurants, gyms and hotels are put on standby while governments announce deconfinement measures. Service-related companies and other types of firms have resigned to letting their employees work from home.

In fact, recent surveys show that in the United States, the number of Americans working from home has doubled since the beginning of the outbreak. Moreover, large global companies are expecting to keep a minimum of 20% of their workforce to work remotely.

Similarly, in Singapore, regulations have been passed to encourage businesses keeping their employees safe home. The change made to the Infectious Disease Act promulgates that employers must implement telecommuting, distancing measures when employees are required to work at the office and the cancellation of certain gatherings with some exceptions.

The upcoming benefits of teleworking will be apparent following the crisis, and a profound transformation of the economy is to be expected. 

The rise of telework and its implication for cyber risk insurance policies 

As it is believed that remote working habits will last after the pandemic, so will insurance policies. Physical risks that one may encounter at the office cannot apply when working from home.

Nonetheless, cyber risk remains a threat, that could potentially grow along with teleworking. Online threats are diverse and commonly include malware, phishing, data breaches as well as ransomware and trojans.

Hopefully you will never have to get to the technical of such cyber risks, but it is important to keep in mind that online threats are constantly evolving. Thousands if not millions of cyber threats are being developed every year. To provide a clear picture on the issue, there has been a 350% increase in ransomware attacks and a 250% increase in spoofing of business email compromise attacks.

Moreover, according to the U.S Securities and Exchange Commission, the average cost of a cyber breach has nearly tripled within one year. While the risks are virtual, the damage is real and so are the costs. Thus, it is detrimental for an organization that is progressively going digital to get the adequate protection with cyber insurance.

Cyber-insurance is used to protect businesses from risks such as the ones previously mentioned. Cyber risk insurance, sometimes referred to as cyber liability insurance coverage cannot prevent attacks, but will reduce your risk by offsetting costs involved with recovery. Some expenses that cyber risk insurance typically cover include business losses, lawsuit and extortion as well as investigation.

There are many factors to consider when choosing your insurance such as deductibles, coverage of non-malicious actions taken by an employee as well as network attacks, amongst many others. As many of these terms may be confusing, BLACAZ can help you getting the coverage more fit to your company. 

Protect your entity from online threats

The accelerated digitalization of countries’ economies is actively shifting the type of risk encountered at work and the coverage needed. To ensure the long-term viability of your company, it is important to get the proper insurance coverage.

BLACAZ is committed to secure the most viable and competitive insurance solutions worldwide, for both current and future needs. From any universal plan to the most bespoke ones. This includes cyber-attacks and any type of online threat that could jeopardize your activity.

You may contact us today to expose your needs and desires in terms of coverage. Our mission is to assist you with any of your request and see what insurance policies would best match with your requirements and telework situation.

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