Businesses in the UAE are facing more and more cyber threats in the present scenario. Both small and large companies are at risk of cyber-attacks. Cybersecurity insurance has become a key way for businesses to protect themselves from the costs of these attacks. But what is cybersecurity insurance in the UAE, and why is it so important for businesses? This guide will explain everything you need to know and why businesses should consider getting cybersecurity insurance.
Cybersecurity Insurance – An overview
Cybersecurity insurance, also called cyber liability insurance, is a policy that helps businesses manage the costs of cyber-attacks and data breaches. This insurance usually pays for things like finding out what happened, recovering lost data, legal fees, and even fines or penalties.
Cybersecurity insurance in the UAE – Why is it important for businesses?
Here are some of the common reasons why cybersecurity insurance is important for UAE businesses:
- Rising Cyber Threats: Cyber-attacks have increased a lot in the UAE, affecting businesses of all sizes. The UAE’s Telecommunications and Digital Government Regulatory Authority (TDRA) reported a 250% rise in cyber incidents in recent years. This shows the need for strong cybersecurity measures, including insurance.
- Following the Rules: The UAE government has strict data protection laws, like the UAE Data Protection Laws, which require businesses to have proper cybersecurity measures. If businesses do not follow these laws, they can face large fines. Cybersecurity insurance can help cover these fines and ensure businesses follow the rules.
- Financial Protection: A cyber-attack can be very expensive, sometimes costing a business millions. In the UAE, the average cost of a data breach is over AED 20 million, according to IBM Security. Cybersecurity insurance helps cover these costs, giving businesses a financial safety net to recover without facing huge losses.
- Protecting Reputation: A cyber-attack can seriously hurt a company’s reputation, especially if customer information is stolen. Cybersecurity insurance often includes support to help manage the damage to a company’s reputation, protecting customer trust and the company’s good name.
What does cybersecurity insurance in the UAE cover?
Cybersecurity insurance in the UAE covers different things depending on the policy you choose. However, a typical cybersecurity insurance policy usually includes the following:
| Cybersecurity insurance coverage | What it covers |
| Business Interruption Loss | Covers loss of income if your business can’t operate due to things like ransomware attacks, DDoS attacks, accidental data loss, or malware. |
| Cyber Extortion Costs | Covers costs to handle threats like stolen data or service attacks and also covers lost profits if your business is affected. |
| Data Recovery Costs | It covers the cost of restoring data that was accidentally deleted, damaged, destroyed, or locked by a virus or malware. |
| Legal Costs for Copyright or Defamation Issues | Covers costs if your business accidentally breaks copyright rules or makes false statements about someone. |
| Liability for Spreading Malware | Covers costs if your business accidentally spreads a virus, malware, or ransomware to others. |
| Service Disruption from Providers | Covers issues if your cloud or service provider can’t provide the services they promised because of a cyber problem. |
| Loss of Personal Data or Privacy Breaches | Covers costs if your business loses personal data or breaks privacy laws anywhere in the world. |
| Fines for Credit Card Data Loss | Covers fines and penalties if your business loses credit card data, including legal fees to defend against valid claims. |
| Not covered by cybersecurity insurance | What it doesn’t cover |
| Predicted or Potential Future Lost Profits | Does not cover any future profits that you think you might lose. |
| Business Devaluation from Intellectual Property Theft | Does not cover loss in business value if your designs or other intellectual property are stolen. |
| Physical Damage to Hardware | Does not cover physical damage to your equipment, like damage from accidents, water, fire, or equipment breaking down. |
| Money Transferred Due to Phishing Attacks | Does not cover any money you lost if you transferred it because of a phishing attack. |
| Costs of Internal Technology Improvements | Does not cover costs for upgrading or improving your systems after a cyber event, like buying new software or security upgrades. |
| Additional coverage options | What else it can cover |
| Media Liability | Covers issues if you are accused of defamation, violating privacy rights, or plagiarism. |
| Hardware Repair or Replacement Costs | Covers the cost of fixing or replacing damaged hardware. |
| Reputation Repair Fees | Covers costs to help repair your business’s reputation after a cyber incident. |
Guide to getting cybersecurity insurance in the UAE:
- Check your risks: First, find out what cyber threats your business might face, like phishing attacks, ransomware, or data breaches. Knowing your risks will help you pick the right insurance.
- Pick the right coverage: Cybersecurity insurance policies can be different. Choose a policy that covers your business’s specific risks. Common options include data breaches, business interruptions, and ransomware attacks.
- Find a good insurance broker: Work with an experienced insurance broker who understands cybersecurity insurance. They can advise you on the best coverage and help you get the best deal.
- Set up strong cybersecurity measures: Insurance companies usually require businesses to have strong cybersecurity measures before providing coverage. This could mean installing firewalls, using encryption, and conducting regular security checks.
- Update your policy often: Cyber threats change all the time, so make sure to review and update your insurance policy regularly to stay protected against new threats.
Final takeaway
Cybersecurity insurance in the UAE is now a must-have for businesses. With more cyber-attacks and strict rules to follow, having the right insurance can help a business survive a cyber-attack instead of facing huge losses. Knowing why cybersecurity insurance is important and getting the right coverage helps businesses protect their money, reputation, and future.
Frequently Asked Questions (FAQs)
Q. What types of businesses need cybersecurity insurance?
Any business that deals with sensitive data, uses online platforms, or keeps customer information should consider getting cybersecurity insurance. This includes shops, healthcare companies, banks, and others.
Q. How much does cybersecurity insurance cost in the UAE?
The cost of cybersecurity insurance can differ based on the business size, the type of industry, and the coverage needed. On average, small businesses in the UAE might pay between AED 5,000 and AED 20,000 per year.
Q. What should I look for in a cybersecurity insurance policy?
You should look for a policy that covers a broad range of risks, such as data breaches, business interruptions, and cyber extortion. Make sure it also covers legal costs and public relations support.
Q. Are there any legal requirements for cybersecurity insurance in the UAE?
There is no law requiring businesses to have cybersecurity insurance in the UAE. Still, it is strongly recommended because of the growing number of cyber threats and the possible financial losses from a breach.
