Business interruption and rising penalties – why cyber insurance coverage is needed

Cyber-attacks are becoming increasingly expensive, causing more disruption by interrupting business operations and resulting in penalties for the business concerned for breaching data protection regulation if the proper protective measures were not in place. Barely a week goes by without another cyber-attack, with experts considering them one of the most serious risks of the decade. Such attacks can cause embarrassment and uncertainty, but it is the financial costs that have the biggest impact.

The cyber extortion of the San Francisco Municipal Railroad (Muni) is a clear example of how a cyber-attack can have practical implications for business operations. One can only imagine the financial impact the Muni Subway will face after approximately 600,000 people rode for several days for free. Businesses now rely on technology to such an extent that these kind of cyber-attacks can have the same impact on a business as a large scale data breach.

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