Does your business need cyber insurance?
As some businesses review their insurance budget in light of the cost-of-living crisis, it’s worth giving us a call to discuss any changes you’re considering. While Cyber Insurance may feel like a ‘nice to have’, it could be more important than you think; here’s why:
Is your business at risk from a cyberattack?
In most small and medium sized businesses, responsibility for data control under the Data Protection Act lies with the owner of the business. The loss of personal or customer data can bring significant financial loss and/or prosecution.
Any attacks could also significantly impair the company’s ability to operate.
Therefore, if your business:
• holds sensitive customer details such as names and addresses and banking details
• is heavily reliant on computer systems to conduct its business
• has a website
• is subject to a payment card industry (PCI) merchant services agreement
then it could be vulnerable to a data breach or loss of vital business service.
In 2022 39% of UK businesses experienced a cyberattack. 83% of these attacks were phishing attempts.
For many businesses, a cyberattack can cause a huge amount of financial damage due to offline websites and stolen information, while also negatively affecting the business’s reputation.
Without a cyber liability policy in place, businesses will have to tackle these problems alone, without the legal advice or compensation that would come with a comprehensive cyber policy.
What is covered by a cyber liability policy?
• Support service – offering expert help and guidance
• Damage to reputation
• Claims for damages made against the business
• Civil Penalties levied by regulators
• Inadvertently libelling a third party in an email or other electronic communication methods
• Reinstatement of data
• Credit monitoring to affected customers
• Compensation costs
• Actively work with the business to minimise losses
• Practical support in the event of a data breach
• Compensation for loss of income
• Payment of the costs associated with regulatory investigations
• Reimbursement for the costs of repair, restoration or replacement
• Defence costs and damage awards if you mistakenly infringe someone’s copyright
• Forensic Investigation costs
• Legal advice
• Notifying customers or regulators
Ensure that your business has cyber cover in place
While your business may never be targeted by cybercriminals, it’s impossible to predict the future, and the risk - and potential fallout - is just too big to ignore. While Cyber Insurance may not seem like an urgent or immediately necessary cost, it can save your business a lot of trouble and money in the event of an attack, and the legal advice, compensation for loss of income, and reimbursement for repair costs may be the very things that keeps your business afloat in the aftermath.