In today's digital world, cyber attacks are on the rise. Companies, administrations and even insurance companies are affected. The Cybercrime affects more companies than private customers. One Cyber insurance is regarded as important protection against the financial consequences of Online fraud and data theft.
For example, VGH CyberSchutz offers a 24/7 telephone emergency service and covers the costs of forensic services. The legally required notification of data breaches is also covered. Small companies receive full cyber protection from around €300 per year.
Despite comprehensive protection options, there are cases in which a Cyber insurance refuses to pay compensation after an attack. There can be various reasons for this, which we will look at in more detail in this article.
Important findings
- Cyberattacks affect companies more often than private individuals
- Cyber insurance offers protection against the financial consequences of attacks
- Costs for crisis management and data recovery are often covered
- The market for cyber insurance is growing with specialized providers
- Compensation can be refused under certain circumstances
What is cyber insurance and why is it important?
A Cyber insurance offers protection against digital threats. It covers damage that can be caused by attacks on IT systems. Today, this protection is indispensable for companies and private individuals.
Definition of cyber insurance
Cyber insurance protects against the financial consequences of cyber attacks. It covers damage, alteration or misuse of IT systems and data. Typical scenarios include hacker attacks, malware or operating errors.
- Data loss and theft
- Business interruptions
- Blackmail attempts
- Reputational damage
Relevance for companies and private individuals
Cyber insurance is particularly important for companies. Almost all business processes today are digital and therefore vulnerable to attack. A successful attack can be life-threatening.
Private individuals also benefit from cyber insurance. It offers protection for:
- Identity theft (up to 15,000 euros)
- Problems with online purchases (up to 3,000 euros)
- Cyberbullying
Cyber insurance supplements the Privacy and reduces Security risks. It makes sense if other insurance policies do not offer sufficient protection.
| Type of insurance | Risks covered |
|---|---|
| Cyber insurance | Hacker attacks, data loss, business interruption |
| Private liability | Unintentional spread of viruses |
| Household contents insurance | Partial data and Identity theft |
The most common forms of cyber attacks
Cyber attacks pose a growing threat to companies. A Bitkom study shows that 75% of German companies have already fallen victim to cyber attacks. Cybercrime have been. The damage is enormous: in 2019, the total damage caused by Cybercrime 102.9 billion euros in Germany.
Phishing and scam emails
Phishing e-mails are a common method of attack. They disguise themselves as normal requests but inject malware. According to statistics, 75-90% of targeted cyberattacks start with an email. An effective Virus protection is therefore essential.
Ransomware attacks
Ransomware attacks involve encrypting data and demanding a ransom. This type of attack has increased dramatically - according to forecasts, ransomware will cause 57 times more damage than in 2015.
Data leaks
Data leaks often lead to Identity theft. 21% of companies report stolen sensitive data. Particularly worrying: 82% of internet users use passwords multiple times, which increases the risk.
| Type of attack | Frequency | Main risk |
|---|---|---|
| Phishing e-mails | 75-90% of the attacks | Infiltration of malware |
| Ransomware | 57x increase since 2015 | Data encryption and blackmail |
| Data leaks | 21% of the companies affected | Identity theft |
In the face of these threats, it is crucial that companies invest in cyber security. A comprehensive Virus protectionRegular employee training and robust security measures are essential to protect against these various forms of attack.
Typical reasons for the rejection of compensation
When it comes to cyber insurance, there are often cases in which insurers refuse to pay benefits. Two of the most common reasons are inadequate security measures and a lack of transparency when reporting claims. According to statistics, two out of three internet users have already been victims of cybercrime, which underlines the importance of this issue.
Inadequate safety precautions
Many companies underestimate the Security risks in the digital space. A lack of regular backups, outdated virus protection programs or missed security updates can lead to claims for damages being rejected. Cyber insurance expects its customers to take basic security measures.
Lack of transparency in damage reporting
Another common reason for the rejection of compensation is the lack of transparency when reporting a cyber incident. Insurance companies require detailed information about the incident in order to correctly assess the damage. Incomplete or inaccurate information can lead to problems when settling the claim.
| Reason for rejection | Frequency | Possible solution |
|---|---|---|
| Insufficient security | 60% | Regular IT security updates |
| Lack of transparency | 30% | Detailed documentation of incidents |
| Delayed notification | 10% | Immediate notification of the insurance company |
To avoid rejections, companies should define and follow clear IT security guidelines. It is also advisable to communicate immediately and transparently with the insurance company in the event of a fraudulent email or cyber attack. Good preparation and quick action can be crucial for successful claims settlement.
How do you recognize a scam email?
Fraud emails are a serious threat in the digital age. Phishing e-mails and others fraudulent messages can have serious consequences. One example is the hacker attack on Düsseldorf University Hospital in 2020, which even led to one death.
Common features of scam emails
To protect yourself from Online fraud it is important to know the typical characteristics of fraudulent messages:
- Unusual sender addresses
- Urgent requests to disclose sensitive data
- Incorrect spelling or grammar
- Impersonal salutations
- Suspicious links or attachments
According to a study by the Federation of German Consumer Organizations, only 57% of respondents were able to identify fake emails as scams. This shows how important it is to be vigilant when recognizing fraudulent emails.
Tips for preventing cyber attacks
The following measures should be taken to protect yourself from phishing emails and other forms of online fraud:
- Conduct regular training for employees
- Use the latest security software
- Critically check all emails and links
- Exercise caution with requests for payment
- Use secure passwords and change them regularly
It is important to note that, according to the European Banking Authority, consumers have to pay for losses caused by fraudulent transfers themselves in 79% of cases. A good cyber insurance policy can offer protection here, but often limits the coverage for phishing cases to up to 15,000 euros.
The claims reporting process for cyber insurance
In the event of a cyber attack, quick action is crucial. Correctly reporting a claim to your cyber insurance company can make or break your reimbursement. Here you can find out how to proceed.
Information required for the damage report
The following data is important when reporting a cyber attack to your insurance company:
- Type of attack (e.g. ransomware, phishing)
- Affected systems and data
- Time of the attack
- Presumed damage
- Measures already taken
The more detailed your information, the better the cyber insurance company can assess the case.
Tips for a successful damage report
To increase your chances of claiming compensation, take note of these points:
- Report the incident to your insurance company immediately
- Document all steps precisely
- Comply with the contractually agreed reporting obligations
- Consult IT forensic experts to determine the cause
- Communicate transparently with the insurer
Thorough preparation for possible Security risks can make all the difference in an emergency. According to a study by Bitkom, 9 out of 10 companies in Germany are affected by cybercrime. Well-coordinated cyber insurance and effective prevention measures are therefore essential.
Legal aspects of cyber insurance
In Germany, the legal framework plays an important role in cyber insurance. The Privacy is the focus here. Insurers must comply with strict regulations in order to protect their customers' data.
Laws and regulations in Germany
The Privacy-The General Data Protection Regulation (GDPR) forms the basis for the handling of personal data. Cyber insurance companies must comply with these rules when processing customer data. The Telecommunications Act (TKG) also regulates the handling of business email accounts when private use is permitted.
Rights of insured persons
Insured persons are entitled to transparent information about the scope of benefits of their cyber insurance. They must be clearly informed about possible exclusions. Legal action is available in the event of disputes over claims for damages. A ruling by the Hagen Regional Court shows the importance of clear insurance terms and conditions:
The court ruled that a cyber insurance policy did not have to cover a loss of 85,000 euros caused by fraudulent emails, as the terms and conditions only covered attacks on the insured's own network.
This case underlines the need to carefully examine and understand insurance terms and conditions. Only then can policyholders effectively exercise their rights and be adequately protected in the event of a claim.
The role of IT security solutions
IT security solutions play a central role in defending against cyber attacks. At a time when security risks are constantly increasing, a robust Virus protection essential. According to a Bitkom study, almost 9 out of 10 companies were affected by ransomware attacks, espionage and data theft in 2020 and 2021.
Importance of preventive measures
Preventive measures are the key to reducing cyber risks. A survey shows that 94% of insurers require potential customers to have an active firewall and an antivirus solution. In addition, 88 percent of insurers ask a risk question about data backup.
Companies are increasingly investing in cyber security to protect their IT infrastructure. This is particularly evident as cyber insurance premiums have risen sharply and are becoming increasingly unaffordable.
Influence on claims for damages
Good IT security can strengthen the entitlement to insurance benefits in the event of a claim. Companies must provide comprehensive insights into their security measures in order to obtain affordable premiums. Two insurers explicitly mentioned the need for an EDR (Endpoint Detection and Response) solution.
| Measure | Requirement of the insurer |
|---|---|
| Active firewall and antivirus solution | 94% |
| Question about data backup | 88% |
| EDR solution | Explicitly required by some insurers |
Despite cyber insurance, companies must continue to invest in the prevention of cyberattacks. A comprehensive IT security strategy is essential to minimize security risks and ensure the protection of company data.
Cyber insurance versus cybersecurity: a comparison
In today's digital world, companies face the challenge of protecting themselves against cyber attacks. Two concepts play an important role here: cyber insurance and cybersecurity.
Differences between the two concepts
Cybersecurity includes preventive measures such as virus protection and data protection. It aims to prevent attacks. Cyber insurance, on the other hand, offers financial protection in the event of damage. According to a study, the proportion of companies that classify cyber attacks as a threat to their existence rose from 9% in 2021 to 52% in 2023.
| Aspect | Cybersecurity | Cyber insurance |
|---|---|---|
| Focus | Prevention | Claims settlement |
| Measures | Virus protection, firewalls | Financial compensation |
| Time | Before the attack | After the attack |
Synergy effects with the combination
The combination of both approaches offers optimum protection. Good cybersecurity measures reduce the risk of attack, while insurance covers any remaining risks. Many insurers cooperate with IT security service providers to offer comprehensive solutions.
Provinzial Nord Brandkasse AG, for example, offers cyber insurance with various components such as liability and loss of earnings. HDI Versicherung AG focuses on business interruption due to cloud outages. These approaches show how insurance and security measures can go hand in hand.
A holistic approach of prevention and protection is the key to protecting against cyber risks.
Experience reports on the rejection of compensation
Companies are often confronted with the harsh reality when it comes to Cyber insurance fraud mail and Online fraud goes. Unfortunately, the rejection of claims for damages is not uncommon.
Reality for affected companies
One case shows how quickly costs can escalate. In one case of damage, the claims amounted to a four-figure sum. The value of the warning letter, including a lump sum for costs, amounted to 7,500 euros. In addition, a contractual penalty of 5,100 euros was due for a breach of the user agreement of a career platform.
"Advertising requests on platforms such as XING are considered spam. Commercial contact is prohibited and can be warned off," warns one expert.
Best practices from the field
Successful cases show that good preparation is crucial. One company was able to limit the damage thanks to its professional indemnity insurance. The insurer negotiated a significant reduction in the warning costs originally demanded.
- Carry out regular safety audits
- Complete documentation of safety measures
- Communicate quickly and transparently in the event of damage
- Strictly adhere to insurance conditions
Experts recommend taking preventive action and protecting yourself professionally against cyber attacks. Investing in active cyber insurance can secure the trust of customers and the stability of the business in the long term.
Future developments in the area of cyber insurance
Cybercrime is on the rise. The global costs are expected to rise to USD 13.82 trillion by 2028. This shows the growing importance of cyber insurance.
Trends and technologies
New technologies are shaping the future of cyber insurance. AI-supported threat analyses help to identify security risks at an early stage. Dynamic insurance models adapt to changing threats.
A survey by Munich Re shows:
- 55% of respondents are concerned about their digital security
- 89% know that their protection against cyberattacks is not optimal
- 34% plan to take out private cyber insurance
Adaptations to new threats
Insurers are further developing their products to counter new threats. The focus is on IoT attacks and advanced ransomware. Preventive measures are gaining in importance:
| Measure | Consent of the respondents |
|---|---|
| Backups of sensitive data | 86% |
| Firewalls | 86% |
| Anti-malware tools | 86% |
| Post-incident services | 84% |
More comprehensive cyber insurance solutions are emerging for private individuals. These not only cover financial losses, but also offer support in restoring digital identity.
Conclusion: What to do after a cyberattack
The threat of cybercrime is alarmingly real for German companies. According to current statistics, seven out of ten companies were affected by hacker attacks in 2023, with a total loss of around 205.9 billion euros. These figures underline the urgency of a well thought-out strategy for dealing with cyber attacks.
Next steps for companies
Quick action is crucial after an attack. Companies should consult IT experts immediately to isolate and document the damage. Immediate notification of cyber insurance is essential. Bear in mind that it takes up to three days to restore the systems of more than half of the companies affected - a time when every minute counts.
Importance of legal advice
In view of possible sanctions of up to 2% of national turnover or 10 million euros for data protection incidents, legal advice is essential. It helps to minimize liability risks and enforce claims. Companies must be able to prove that they have taken appropriate precautions for data protection and security. A thorough analysis of the incident is also crucial in order to prevent future online fraud and optimize IT security.
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