What happens when criminals crack your code?
Telecoms giant Talk Talk estimate that a cyber-attack it sufferedlast November has cost the company £42 million in clear up costs, that is a huge sum even for a company of its size and will have a lasting effect on its financial position.
Cyber-crime is not just a big company problem. With 74% of small businesses in the UK having experienced a security breach in 2014-2015* and cyber-crime on the increase, cyber security is a key consideration for businesses of all sizes.
Why do businesses need cyber insurance?
A 2014 government survey estimated that the average cost of a cyber-security breach for SME’s is between £65k-£115k, add to this the repetitional damage and some companies find it hard to recover from such an incident.
What can a cyber insurance policy cover?
The world of technology changes daily and it can be hard for the layman to understand what exactly is covered and what’s not. The three main areas of cyber insurance are;
Cyber Crime Cover – this can cover phishing, email cloaking, fraud carried out over the internet.
Data Breach – in the event of lost or stolen data, this can cover initial forensic costs, reinstatement of data, the cost of customer notification, PR needed to minimise reputational damage.
Business Interruption – policies can extend to include BusinessInterruption cover in respect of trading time lost due to the incident.
How best can I protect my business?
The important thing is to engage with us, we can carry out a full review of your needs and talk to you about exactly what cover is provided in your policy.
What types of claims arise under a cyber policy?
Here are some examples;
“Petrol Station - 550 cards “skimmed” - cost £13,750”
“Letting Agent - 2,600 rental applications stolen from the office - cost £65,000”
“Haulage - Computer system hacked by former employee. System needed reconfiguring & Business Interruption costs - cost £24,197”
* - Information security breaches survey 2015, Department for Business, Innovation & Skills, June 2015