Article provided by Santam
It goes without saying that all businesses had to adapt to a post-COVID world; not only did we have to change our operations, but also the way we protect ourselves had to evolve. The need for a digital evolution has become vital for all businesses. Many businesses in South Africa are not adequately protected against cybercrime, mainly due to a lack of information or the belief that “it won’t happen to me”. The reality is that cybercrime is real and on the increase in South Africa.
Cybercrime is on the rise because of three main reasons
- System vulnerabilities: When cybercriminals spot a weakness anywhere in your system, they capitalise on it.
- Lack of security assistance: Businesses aren’t aware of simple steps to increase security. Data breaches happen because of weak passwords.
- Risk assessment: Cybercriminals count on businesses underestimating the risk of cyber attacks.
What is cybercrime and cyber extortion?
Cybercrime is any criminal activity that involves a computer and a network connected to the internet. The computer may be used in the act of a crime, or in some cases, it can be the target of a crime. Cyber extortion is when the cybercriminal demands payment using threats or any malicious activity such as data theft or data breach. Examples of cyber extortion include ransomware, email ransom campaigns, and denial of service attacks.
Why is cyber insurance so important for all businesses?
As a business moves more towards e-commerce and an even greater online presence, it’s important to be protected against cybercriminals. Cyber insurance helps businesses with cyber risk management advice and protocols because the human element is the biggest risk within any business’s computer system or cyber security controls. Phishing attacks are specifically designed to take advantage of human nature and employee mistakes.
Risk management tips to prevent cyber attacks are:
- Increase staff awareness.
- Implement strong password management policies.
- Consult a security specialist.
- Reduce unnecessary transfer of information.
- Avoid complacency with regards to data management.
As a business owner you have a responsibility to those who rely on you to follow reputable business practises, and a responsibility to your own organisation to be protected against losses from cybercrimes. When it comes to cyber insurance, Santam is the natural choice, because we understand the risks that go along with creating a digital presence for your business. For intermediaries who want to understand more about cyber insurance and cyber extortion, we’ve proven to be that reliable source and we are an internationally-recognised IT Security and Incident Response service provider. Our bespoke cyber insurance cover is specifically curated for businesses that employ up to 100 people with a turnover of up to R20 million. These are the four areas we cover:
1. Data breach and restoration
After a breach, the business may incur legal costs and pay damages to third parties. This extension provides cover for legal defence costs and damages if the case is unsuccessfully defended.
2. Third party liability
This covers your business against any claims that your clients or intermediaries make towards your business should they experience a cyber attack on your system.
3. Business interruption
The offering is designed to assist small to medium business owners to bring their business back on track after a breach.
4. Cyber extortion and cybercrime
This extension helps get businesses running as soon as possible after a cyber attack and manages the financial implications as a result of the ransomware.
We have the right tools, support and expertise to offer businesses with adequate protection against cybercrimes. We’ve also got you covered in the event of data breach and restoration. At Santam, we also understand the intermediaries’ role in driving awareness on cybercrimes, therefore we believe in educating the intermediary who can spread that knowledge to clients. All businesses have an obligation and duty to protect not only their interests, but those of their customers and intermediaries who rely on them.
The best way to protect and manage any risk is to get business insurance that is tailor-made to suit your business needs and operations. We at Santam are taking the lead on emerging trends in business insurance such as cyber insurance.