March 09th, 2016

Author - Andrew Long

​

 
Cyber Attacks - hype or stark reality?
 
Cyber security has become a key risk to businesses of all sizes. With almost 3 in 4 small businesses in the UK having experienced a security breach in the last 12 months, cyber attacks have become headline news.

In today’s business environment, virtually all companies (regardless of their size) collect and store personal information about customers, employees and others.  With this increased level of data, follows a higher rate of data breaches - the theft, loss or mistaken release of private information - is on the rise.

Don’t be fooled in thinking that these data breaches are just a big business problem; small and medium-sized businesses with fewer data security resources are particularly vulnerable.

Why do businesses need cyber insurance?

With the average cost to a small business of the worst security breaches between £75-£311,000, having specific insurance coverage in place to mitigate these risks can reduce the financial impact.

Key considerations for businesses when choosing cyber insurance are whether the policy provides:

– Cover for the costs of dealing with data breaches

– Cover for the costs of dealing with cyber liability claims

– Cover for business losses from a cyber event

– Cover that helps businesses deal with the impact of cyber crime

– Cover for hardware and data corruption

– Access to expert advice and support e.g. IT, legal, forensic and media relations when an incident occurs.

How can businesses protect themselves?

The best advice to start with is to speak to an insurance expert. By trying to purchase this cover on-line or over the telephone, you risk there being gaps in your cover (see above) or simply not getting the cover that is tailored to your business.

At Cass Stephens, we are able to access specialist policies that are designed to meet the demand of businesses faced with this modern-day threat to their survival.

One insurer with whom we deal can offer cover that would deal with the following scenarios:
 
Example claims covered under the HSB Cyber Insurance policy

Data corruption and extra costs

Ex-employee hacked computer system. Data restoration and recreation required.

Claim: £21,956

Cyber liability

Property management firm’s email system became corrupted. IT investigation needed to confirm a virus was the cause. Former customers sued for damages after being infected by email. Claim: £31,261

Data breach

Accountant’s laptop stolen containing 800 customer tax records. Cost to replace laptop, notify clients and investigate loss. Claim: £35,000

How many times have you witnessed a laptop or tablet being left unattended on a train whilst the owner visits the buffet carriage for instance?
 
Further information
 
Please feel free to get in touch if you have a specific enquiry or would simply like to talk through your options.
 
Andrew Long Cert CII
Commercial Account Executive
Cass Stephens Insurances Ltd