Businesses store more sensitive information than ever on their computers.
As a reliance on technology increases, the risk of suffering a loss related to failure of computer systems, or holding sensitive customer data grows.
Cyber Liability Insurance can help protect businesses against potentially disastrous consequences.
Any company dealing with electronic data – whether it’s on computers, mobile devices, servers or on websites – face risks. These include business interruption, income loss, damage management and repair and, as a result, reputational damage and possible third party damages.
Yet, as an Insurance Broker, I’ve found that it seems like a surprisingly low number of small businesses have invested in Cyber Liability Insurance.
Why you need Cyber Liability Insurance
“It has been said that there are only two types of companies; those that have been hacked and those that will be” – Robert Muller, FBI Director
You may need Cyber Liability Insurance if you:
- are reliant on computer systems to conduct your busines
- have a website
- hold sensitive customer data, such as names, addresses or banking information
- are subject to a payment card industry merchant services agreement.
It could be that your business holds personal information on customers, with data on physical servers or in the cloud, or perhaps you are reliant on a website for the running of your business.
Damage or unauthorised access to any of these could lead to reputational damage and legal or regulatory costs.
Cyber Liability Insurance protects against the losses relating to damage to, or loss of information from, IT systems and networks. It can also cover the financial losses associated with a data breach or cyber attack and therefore help limit the impact on your business and your customers.
According to Leading Insurer Hiscox, and the 2015 Information Security Breaches Survey, 90% of large businesses and 74% of small businesses had a security breach over the previous year. The average breach costing small businesses £75,000.
What can Cyber Liability Insurance cover?
Cyber Liability Insurance policies can cover losses sustained by your own business. In addition it covers liability for damages claimed by a third-party.
Cyber crime – financial loss following an external hack into your company’s computer network. This could be theft of money, property, or your digital assets.
Breach costs – support in the event of a data breach (electronic or otherwise) including forensic investigations, legal advice, notifying customers or regulators, and offering support such as credit monitoring to affected customers.
Your Liability to others – costs to defend and settle claims made against you for failing to keep customers’ personal data secure, including costs associated with regulatory investigations and settle civil penalties.
It is thought that, worldwide, one PC is infected every 4.5 seconds.
Whilst most customers with standard insurance programs are unprotected against such a loss, Cyber Liability Insurance cover can be taken out from as little as £100.00 per year.
An experienced insurance broker will be able to review your risks and provide professional advice on the best cover for your business.
To get a quote and discuss your options, please contact us:
- Call us on 01708 289 525
- Chat with us LIVE using the Live Chat function
- Complete our ‘Get a Quote’ Form
More information about cyber security is available on GOV.uk