What is Cyber & Data Risk Insurance?
This type of policy is there to provide protection and support to businesses in the event of a data breach or suffering from a cyber ‘hack’.
Do I need Cyber Insurance?
The Government’s National Cyber Security Centre advise for small or medium-sized enterprises that there is around a 1 in 2 chance that you will experience a cyber security breach, and that the average cost to the business is around £1,400*. Both of these figures are on the rise.
All businesses have some level of dependence on technology and with ever-expanding use of social media and development of IT systems this is increasing over time. As a consequence businesses are exposed to the risks of business interruption, income loss and reputational damage in the event of a data breach or ‘hack’ which can take time and expense to recover from.
Why do you need Cyber Insurance Cover for your business?
Organisations must have the ability to respond and defend against evolving threats to their business.
You should consider this insurance if:
- You have a company website
- You hold information or data on suppliers, employees or sensitive customer data, for example names, addresses, email addresses or banking information
- You are reliant on computer systems to conduct your business
- You take card payments or make payments electronically
Your account handler
Good relationships are good for business. So at Stanmore Insurance, we believe in really getting to know our customers. That’s why we provide you with a dedicated account handler, who’ll get to know you and your nursery on a one-to-one level
What does this insurance cover?
Most insurers can look to tailor cover to meet different business requirements and will include both first party and third party covers. The cover can typically include;
Data Protection & Cyber Liability:
Third-party liability claims following a security failure. This could result from confidential information being breached, for example. Cover would also extend to defence costs and insurable fines. Some insurers include defence against allegations non-compliance with GDPR within their cover.
Getting your business back up and running including loss of income and mitigation expenses
Cyber criminals can use ransomware to encrypt data and withhold it from you until payment is made. The costs incurred as a result of this, including any ransom paid and the services of specialist extortion advisors, can be included.
Following a cyber attack, there will be a variety of services needed to get back on track. This insurance can pay PR costs to protect a business’ reputation, the cost of notifying those whose data has been compromised, forensic investigations, credit monitoring, and certain other legal or IT costs that could arise.
Dependent business interruption:
Your suppliers’ systems and services can be just as valuable. Cover can be extended to include losses and mitigation expenses following a security or system failure from an outsourced service provider
Beyond this other covers can also be incorporated such as Digital Media Liability, Financial Crime/Fraud, Property Damage and Telephone Hacking.
No matter how much a business invests in security, their IT systems will never be 100% secure. Even if your IT is outsourced, it’s likely that you will still be held liable. With that being said, there are ways that your exposure can be reduced, these can include;
Staff / User Training
Hiscox Insurance report in 2018 noted that 67% of their cyber claims involved an element of employee error**. It’s important that staff understand their role in keeping the business secure and hacking techniques are developing all the time.
Most businesses now allow some element of remote working with staff being able to access work emails and files with on mobile phones or laptops. As their devices are portable there is always a risk that they can be misplaced or lost which may open up our system to potential hacking.
Avoid Public Wi-Fi
More and more locations are offering public wi-fi which although maybe be seen as helpful and convenient, you should always be mindful that’s anything you do on public Wi-Fi is NOT secure.
Cyber Essentials Scheme
This is a government-backed scheme designed to help businesses guard against cyber threats and certification is available once completed. This program outlines the basic steps your business can make as you take your first steps towards protecting yourself from cyber threats.
You will never be able to completely protect your business from cyber criminals, the world we live in is changing so rapidly that it is almost impossible to keep up with changes in hacking techniques and technologies. If you were unfortunate enough to become victim of a cyber-attack, having the right insurance in place means the attack is unlikely to have a long term effect on your business,. Plus your insurance will make sure you are supported throughout. We can help you with this one.
*National Cyber Security Centre (2017). Cyber Security: Small Business Guide
**Hiscox Cyber Claims Report (2018)