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Why you need Cyber Liability Insurance Cover

Why you need Cyber Liability Insurance Cover

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.

The Stats

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.

Cyber Liability Insurance

Cyber Liability Insurance

About Cyber Liability Insurance

Almost every business, in any sector, now has some reliance upon information technology. Whether your business has a huge IT infrastructure or only occasional use of online services, there are potential risks that come from a business connected to a worldwide network.

Relying on the internet and IT to any level opens your business up to threats and risks including business interruption and financial loss, which in turn can lead to reputational damage, entirely down to the failures or problems with your IT systems.

Cyber Liability

A survey by the UK government found that 81% of large corporations and 60% of small businesses suffered a cyber breach in 2014. These threats and breaches come in many forms and can be anything from device theft to website hacks to malware, data loss and fraud. The same government survey also found that the average cost of a single breach is £600,000 to £1.15m for large businesses and £65,000 to £115,000 for small-to-medium sized businesses. These kinds of costs are enough to break a business and even cause it to close which is why you need cyber liability insurance.

Data leaks and losses can be the end of a business and so it is integral your personnel both understand the risks and are educated to handle them effectively.

As the above information shows, it doesn’t matter how large or small a business is, the risk is there. There has been policy to protect against these breaches, thefts and leaks for many years and as well as providing insurance, businesses have come to accept that cyber security is also a risk management technique. You have a responsibility to your customers and clients to have effective security in place to protect your IT infrastructure and the data it holds.

The sophisticated nature of hackers and online criminals means that businesses have to be agile. Just Quote Me is partnered with Cyber AMI to ensure our level of cover and education does not disappoint. Our partners are an accredited Cyber Essentials Training Partner and they specialise in providing training and education for your business and your staff, to ensure they are equipped with all they need to know about protecting the company against potential risks relating to IT. They provide education and training for absolute beginners as well as those who have experience in this area and are committed to training all staff beyond benchmark level. This equips your company with the tools it needs to protect against potential threats against your business online, protecting your reputation and financial position.

Protect your Business Reputation

Cyber and data risks can negatively impact your business and they are increasingly hard to protect against, as the technology behind the threat evolves. With Cyber AMI you have a specialist partner who evolves at the same pace as the threats, ensuring they are kept at bay and your business is fully protected.

Just Quote Me is proud to offer our clients cyber liability insurance through our partner company who are recognised experts in their field.

Get a FREE Cyber Liability Insurance quote

Contact Just Quote Me today to get your FREE no obligation Cyber Liability Insurance quote on 0800 084 2325 or fill out our Quick Quote Form.