Britam Insurance company has partnered with cyber insurance leader, Chubb, to offer its corporate clients with cyber-security coverage.
This will enable corporates to mitigate their risk in the event of cyber crimes, which have been on the rise in Kenya.
Recently, the Central Bank of Kenya (CBK) directed that all firms running financial services are responsible for the security of their clients information. They would therefore be liable in the event of a security breach.
Britam’s cyber security product is the first of its kind in the Kenyan insurance market.
It covers the loss or damage of electronic data and the reputation damage that results from a cyber attack incident.
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The insurance also covers loss of data due to theft, damage, disruption or corruption of electronic data.
Last but not least, the insurance product covers risk incurred due to property damage arising out of a network security breach, business interruption, and extra expense coverage arising out of system failure.
Britam General Insurance CEO Margaret Gathanga explained, “With Kenyan businesses stepping up to digitize and embrace new technologies the vulnerabilities are likely to increase, this demonstrates the huge need for protection against such attacks,” she said.
Data from the Communications Authority (CAK) also shows that cyber-attacks rose by 10 per cent in the first three months of 2019 with 11.2 million Kenyan organisations being victims.
What Is A Cyber Insurance? Should Companies Consider Getting One?
Having insurance is reassuring for both individuals and organisations. Whether one’s signed up for auto insurance, business insurance, life insurance, or any other type of insurance, this policy will offer them protection against financial loss and damage.
A cyber insurance policy will cover for your business’s liability in the event of a data breach where third-party data is compromised. Some pieces of information that cyber insurance can cover are customer information like account numbers, credit card information, Social Security numbers, health records, and driver’s license information.
With the increasing reliance of businesses on the online landscape, cybercriminals are designing more sophisticated online attack strategies. By having cybersecurity coverage for your business, you have some form of protection against digital crimes. If you already have business insurance, it’s even more advantageous for your venture.
Many small business owners think that they neither need business nor cyber insurance as they’re not as exposed to dangers as larger and more popular companies. It’s actually the other way around. Small and mid-size enterprises (SME) are also at risk, and it’s even more difficult to get up after an attack as smaller organisations have smaller resources.
Along with protecting the data of your company and clients, it’s important to make your customers feel safe while they’re shopping.
