While the concept of insuring your home or business premises has been established for a very long time, insuring against the effects of cyber crime is a much more recent concept that is still overlooked by many businesses. However, as more and more businesses are finding themselves on the receiving end of cyber attacks and system breaches, Cyber Liability Insurance is something that is becoming more and more essential for businesses of all shapes and sizes to consider.
What Does Cyber Liability Cover?
Cyber Liability Insurance covers the costs associated with repairing your business following a cyber attack, data breach or other IT-related misfortune. This could be because your business is deliberately targeted by online criminals, because you fall victim to a virus or malware intrusion that affects your computing equipment or even if an IT issue causes your website to go offline, affecting your ability to do business.
There are a lot of things that Cyber Liability can cover and these will vary depending upon the nature of your business. But if you hold sensitive customer details (such as names, addresses and banking information), rely on IT systems and websites to conduct your business or process payment card information online then a cyber breach could be hugely damaging to your business and Cyber Liability could offer you vital support when you need it most.
The effects of cyber crime can vary, but can include many considerations you may not have thought of. The beyond the obvious inconvenience of losing access to your IT systems, or losing important information, your computing equipment could be damaged beyond repair and need replacing, you could face legal action from customers or employees if their personal information is compromised and your business could suffer reputational damage that drives existing customers away and stops new ones from placing their trust in you and your services.
How Does This Protect My Business?
Cyber crime is becoming increasingly common risk to businesses and individuals in the UK. In fact, it is estimated that from 2014-2015, the UK saw an estimated 5.1m online fraud incidents and an additional 2.5m cyber crime offences.
The effects of cyber crime can vary, but can include many considerations you may not have thought of and the costs can quickly mount following such an event. Communications company Talk Talk has recent suffered a high-profile scandal after hackers accessed the personal details of 157,000 customers and stole more than 15,6000 bank account numbers and sort codes. The impact this has had on Talk Talk is huge. As well damage to its reputation and a drop in share prices following the negative publicity, it is estimated that the company will have to pay up to £35m in one-off costs. This expense cover things like responding to the attack, call centre costs, IT costs, legal action and loss of revenue due to online sales being disabled.
Major attacks like this dominate the headlines but smaller victims often fall victim to similar situations, often because they lack the robust online protection that major companies like Talk Talk possess. A government survey estimates that the cost of a data breach for a SME can be between £65,000 and £115,000, plus resulting in as many as 10 wasted days.
The best way to make sure your business is not affected is to take your online security seriously; investing in anti-malware software and ensuring your passwords and customer details are effectively guarded. However, even the best security can fall victim to a cyber attack which is why Cyber Liability Insurance can be an extremely wise investment and at C&M, we’re able to help you arrange the right protection for your business. If you have any questions about Cyber Liability cover and what it can offer you, please do not hesitate to get in touch with us by calling 01708 764 000 or emailing us at firstname.lastname@example.org.