Data is increasingly vital to businesses – in fact according to IBM the data we have created in the last two years alone accounts for 90% of all the data in the world. But while this increase in data can be vital in improving your business, it can also leave it vulnerable to cyber risk.
The Effects Of A Data Breach
A data breach may seem like quite an exotic or unusual risk but statistics indicate that most businesses have been affected one way or another. Government figures found that 81% of large corporations and 60% of small ones reported a security breach in 2014 while the Information Security Breaches Survey 2015 found that 90% of large companies and 74% of small ones have reported a breach so far this year.
The effects of a data breach your business can be wide ranging, some of them obvious and others you may not have considered. Most obviously, the sudden loss of vital data can make it incredibly difficult for some businesses to operate and according to the Strategic Research Institute, if a company is unable to resume normal operations within 10 days of a disaster; it is unlikely to survive at all. This uphill struggle to resume operations is compounded by fines of up to £500,000 under the Data Protection Act, not to mention any other costs or compensation pay outs you may face. In fact, government figures put the total costs of bad security breach at £115,000 for small businesses and as much as £1.15m for larger ones.
How To Manage The Risk
Firstly, a robust security system is crucial to protect your business and its data from cyber attacks. Firewalls and virus detection software will help protect you from malware and cyber crime, while password protecting your data, or encrypting it, will mean that any data that is lost or stolen cannot be accessed by a third party. It’s also sensible to have access controls, for example using a virtual network when employees are signing in from home, or distancing retail facing websites from the main systems, to help prevent someone hacking in and to limit the damage they can do.
Data back-up is another good way to make sure that if you do suffer a cyber breach, you still have access to all your important information and perform a regular back-up is a must. This can be done to a hard drive or server that is stored off-site so it’s not lost in case of fire or flood, or to a cloud-based system so that no physical device is needed.
How Insurance Can Help
Though taking the correct step to prevent a data breach is essential, it’s also crucial to have insurance protection in place so that in the event a breach does occur, you’re business will be supported.
At C&M Insurance, we’re able to arrange Cyber Liability Insurance to cover you in the event of an attack. This cover can be used to repair or replace any damage equipment, help you recover any lost or stolen data and cover the costs of any expenses, fines or compensation your business might accrue in the wake of a breach. Legal support, PR support and more can also be granted to help guide your business through what could otherwise be a difficult time. With cover such as this in place, your business will be in a far better position to bounce back from the damaging effects of a data breach.
To find out more about Cyber Liability Insurance, call C&M Insurance on 01708 764 000 or email us at firstname.lastname@example.org.