As the threat of cyber-crime increases it is more important than ever that you protect yourself, your business and your clients.
p>Whether you have a small start-up or run a large corporation, cyber liability insurance can help you to remain on top of cyber threats as well as potentially minimising the damage of the breach. You may feel that your business is well-protected from cyber-criminals, or perhaps that your business is too small for them to target, however, as the techniques used by hackers become more sophisticated you could be leaving yourself at risk from a cyber-attack. This guide will help explain the ins and outs of cyber liability insurance and help you choose the right level of cover for your business.
Cyber insurance is designed to protect businesses from internet-based risks and, more generally speaking, risks relating to information technology infrastructure and activities. It can also help you to limit the damage caused by a successful attempt to access your business data. Cyber liability policies can offer support such as data recovery and business interruption cover which can help you to get you back on your feet in the event of a cyber-attack.
If your business handles sensitive customer data such as names, addresses, or banking information, or you are reliant on computer systems to conduct your business, you should be protecting your customer data as this could be compromised in the event of a security breach.
Some people feel that their business is too small to warrant investing in cyber liability insurance, however, according to a report by the Federation of Small Businesses, two-thirds of their members were victims of cyber-crime between 2014 and 2016. Our cover is designed for businesses with an annual income of up to £10 million, meaning that it can be tailored to suit your needs even as a small business.
Most importantly, you need protection against the financial loss that you will suffer if your customers' personal identifiable information (PII) is lost, stolen or leaked. From April 2018, the General Data Protection Regulation (GDPR) means a company can be fined up to €20 million or 4% of its turnover (whichever is the higher figure).
Cyber liability insurance can cover you for a range of different security breaches including:
These are just a few examples of what could be covered by a cyber liability insurance policy. For more information read our dedicated cyber liability insurance page.
When investing in cyber insurance it is worth looking at the potential risks your business faces and if there are way to reduce them. Even large companies with departments dedicated to IT security are at risk of data breaches but there are some actions you can take which may reduce the threat.
Regular training for staff - Hacking techniques are developing all the time and it is important that staff are kept up-to-date with the latest threats to keep an eye out for.
Data encryption - This is different to having a password: it scrambles the data on a hard disk so that it can only be accessed with a decryption key. This is generally considered much safer than password protection.
Storing portable devices at work - Limiting the chance of laptops or tablets being left in public can help to reduce the risk of hacking due to the loss of a device or memory stick. Although it is not always possible to keep these devices in the office it is certainly worth considering.
Keeping up with legal changes - It is important that you stay up-to-date with any changes in the law to ensure that your insurance does not become invalid without your knowledge
To give you peace of mind, we can offer cyber insurance that is tailored to your business needs. As well as providing cover in the event of a security breach, we can also provide you with access to a team of experts who will work with you to minimise your loss and the possible damage to your business.
We also give you access to tools and resources to help you stay up-to-date with the evolving risks which will help you to understand your exposure and therefore establish a suitable response plan. For more information visit our cyber liability insurance page or call us on 0330 1235 740.
This is a marketing article by Towergate Insurance.
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