All businesses rely on an IT infrastructure to some degree. As a result, you are exposed to the risks of business interruption, income loss, damage management and repair, and possibly reputational damage if IT equipment or systems fail or are breached, and you don’t have Cyber Liability Insurance.
A UK Government survey estimated that in 2015 74% of small to medium-sized organisations suffered a cyber breach. The average cost of a cyber-security breach can be as much as £310,000.
This is especially important to you if you hold:
- Sensitive customer details such as names and addresses or banking information
- Rely heavily on IT systems and websites to conduct your business
- Process payment card information as a matter of course
What is Cyber Liability Insurance?
The penalties can be high if a company’s IT security is found to be inadequate and a breach occurs. Under EU regulations which came into force 25th May 2018, you are required to notify your customers of a cyber security breach and could be fined up to 4% of your turnover.
In addition to potentially substantial fines it can also lead to a damaged reputation, legal costs and associated business disruption and lost revenue.
Will your customers trust you after a security breach?
Cyber Liability has become headline news following a number of high profile hacking cases. This has led to a greater awareness of the risks and need for cover. Yet it’s not just the large corporates who are at risk.
As a business, you are likely to hold a lot of personal and sensitive data concerning your customers. The increasing use of online portals could give hackers access to sensitive information held about individual customer accounts.
Cyber Liability covers you against financial losses and third-party liabilities up to the limits chosen arising from cyber attacks.
Every organisation is a potential victim
All organisations have something of value that is worth something to others. You may experience some form of cyber attack if you openly demonstrate weaknesses in your approach to cyber security by failing to do the basics.
Part of your risk management process should be assessing whether you are likely to be the victim of a targeted or un-targeted attack. Every organisation connected to the Internet should assume they could be a victim of the latter.
Either way, you should implement basic security controls consistently across your organisation. Where you may be specifically targeted, ensure you have a more in-depth, holistic approach to cyber security.
Recent reports revealed that despite increased efforts and spending in the realm of reducing cyber-risk, over 60 per cent of UK businesses identified that they have a cyber-security skills gap. What’s more, over half of these organisations believe they have an increased risk of suffering a data breach as a result.
What does your Cyber Insurance cover?
Cyber insurance may cover several different things, dependent on the level you opt for. There are policies which offer scalable cover including elements such as:
- Data Breaches
- Dealing with any cyber liability compensation claims
- Cover for business losses and interruption
- Cover for supporting your business through the aftermath and impact of the cyber event
- Hardware and data repair and replacement
- Forensic investigation, expert advice and IT support
Don’t risk it. Cover your business with Cyber Insurance today by getting in touch or going to this page on our website.
If you would like to know more about the possible risks and solutions to your business’ IT department, we’ve prepared a PDF with more information which you can download here.