With 90% of large organisations and 74% of small organisation suffering a cyber attack according to the Government’s 2015 Information Security Breach survey, the numbers of cyber crime are high, whichever way you look at it.
The problem for smaller companies is that they may not have the resources available to protect themselves as necessary, which makes them a prime target for hackers and cyber criminals.
Paying for cyber crime
Hackers look for an opportunity as much as a lucrative job, and SMEs who might not have a stringent IT security policy in place, or no dedicated IT team to keep on top of anti-virus software, are a sitting duck for an online breach.
Yet UK businesses are still either leaving their IT systems to chance with inadequate software, and further more by not taking an insurance policy out.
Just 11.1% of companies are buying Cyber Liability Insurance. Whether those opting to go without are funding the recovery of breaches by some other means is unclear, but there is always the danger that reserves set aside will not be enough to cover the attack itself and its consequences.
Most organisations who have suffered a breach have not attempted to calculate the financial damage, because subsequent issues such as customer compensation or fines from regulatory bodies might take time to unfold.
This means any finances set aside would be purely guesswork, as there is no way of knowing how badly a business can be affected.
Securing your protection
To protect your business from cyber crime, you need to take it seriously, and you also need to know that weak security is a lure for hackers. Not only this but if you are a third party supplier to a business which is a more likely target, you could find yourself a victim of “spear phishing”, where hackers gain access to information around the company they have their sights on, through your business.
A Cyber Liability Insurance policy arranged by C&M not only protects you in the event of a breach, but also makes you aware of the dangers online and how you can protect against them, while potentially lowering your premium.
Talk to our advisers to find out more.