The cost of a cyber-attack vs cyber insurance
A Vista client recently fell innocent victim to a phishing cyber-attack that cost their business over £100,000. Although the breach didn’t have an immediate financial impact on their balance sheet, the knock-on effects and investments needed into system upgrades, better protection and staffing costs soon mounted up. Following the attack came a £30,000 system upgrade and a further £70,000 bill on staff overtime to facilitate the improvements, which understandably hit the business hard. Like many businesses our client had previously never considered cyber insurance but now they would never be without it.
The recommended cyber insurance was quoted at £3,800 and as expected the client was very keen to proceed, but unfortunately things weren’t quite that straightforward. Given the previous attack and the perception that the business was a high risk, the insurer declined cover.
This is where the team at Vista made a difference. Communicating and negotiating with the insurer to demonstrate that the client’s investment, into system upgrades, enhanced security, ongoing testing, and new protocols, meant that the client was a far safer risk than initially thought.
Through Vista’s hands-on approach and support, we successfully secured cover for the client for everything they required.
Nigel Bailey, Vista’s Sales Manager who advised on the cover said “When our client approached us, they had lost their entire invoicing system and had to use backup data which was out of date to clear their systems of the attack. Although there wasn’t a direct loss to the business, the disruption, and manpower needed to get back up and running resulted in significant and unplanned expenses. The importance of cyber security insurance is now at the forefront of their risk strategy and will be a key business purchase every year. We were delighted to be able to secure cover this client and the extra steps we took in negotiation with our insurer panel are all part of the Vista personal service”.
If you would like to know more about cyber insurance contact us today.