“My company is too small to be a target for a cyber attack”
“I already have a computer policy so I don’t need cyber insurance”
“I already have anti-virus software”
These are common misconceptions when considering cyber insurance. Here are 10 reasons you may benefit from cyber insurance and a short video highlighting the risks to you and your business.
BUSINESS MAY GRIND TO A HALT
With most organisations heavily reliant on technology to conduct everyday business, inaccessibility of IT systems due to a cyber attack or data breach can result in severe business interruption to both first and third parties. A comprehensive cyber insurance policy will include cover for loss of profits, internal errors and unexpected technical failures.
A CYBER ATTACK CAN BE COSTLY
In addition to ‘surface’ costs (customer breach notifications, regulatory compliance fines and technical investigation costs), organisations may also incur less visible costs, such as lost contract revenue or loss of intellectual property, for which a cyber policy may offer cover. The average cost of UK cyber crime increased by 31% between 2017 and 20181, costing the UK economy around £11bn.
PEOPLE MAKE MISTAKES
More than a fifth of data breaches occur as a result of human error or negligence, such as loss of a device or a stolen laptop containing sensitive data. Other examples include employees using personal USB sticks or clicking links within SPAM emails.
REGULATORS CAN LEVY HEFTY FINES
With increasing focus on data protection regulation, such as GDPR, cyber insurance may include cover against defence costs, fines and penalties following unauthorised disclosure of personal and/or confidential information.
YOUR PERSONAL OR COMPANY’S REPUTATION MAY BE DAMAGED
Where your personal or company’s reputation is threatened following an attack or breach, a comprehensive cyber policy will cover the cost of a consultant to help minimise damage to reputation and brand.
COMPUTER INSURANCE ALONE WON’T COVER LOST DATA
Computer insurance may cover damage to hardware but not software. A reputable cyber insurance policy will cover costs required to restore data system functionality and lost data, helping to get systems and networks back up and running swiftly.
ANY BUSINESS CAN BE A TARGET
Cyber criminals don’t discriminate by company size or type. In 2018, 31% of micro and small businesses and 61% of large firms identified breaches or attacks. Therefore any business which stores digital data can be at risk of an attack or data breach.
ACTING FAST IS KEY
Cyber insurance may include cover to pay for forensic experts to identify, contain and remove the threat. The sooner this is done the better. Ponemon Institute research4 reported that companies which contained a breach in fewer than 30 days saved over $1million as compared to those that took more than 30 days to resolve the incident.
CYBER INSURANCE REASSURES THIRD PARTIES
Taking out cyber insurance can send a clear message to customers and suppliers that a company takes IT security seriously and has protection in place to manage an incident in the event of a breach. This assurance can be a selling point for companies looking to qualify for bids and tenders.
CYBER CRIME IS INCREASING
The most common fraud in the UK in 2018 was cyber crime and cyber incidents topped the Allianz Risk Barometer 2019 as a key corporate peril for UK businesses. Generally, cyber attacks are on the increase so it’s more important than ever for companies to take measures to protect themselves. Cyber insurance can offer such protection, in combination with robust risk management strategies.
Cyber criminals continue to make headlines by targeting a multitude of companies. More than a third of business owners say they’d been the victim of cyber crimes such as hacking, phishing, and pharming. Watch our cyber risk video below, you’ll learn how every business faces risk, no matter how small, could be exactly the target cyber criminals are looking for.
Please contact [email protected] or call 0330 056 3665 today and a member of our team will be happy to discuss your best cyber solution. If you are limited on time please leave your details below and a member of the team will be in touch. Thank you.
*References: Accenture & Ponemon Institute (2019). The Cost of Cyber Crime: Ninth Annual Cost of Cybercrime Study. [online Available at: https://www.accenture.com/us-en/insights/security/cost-cybercrime-study [Accessed 16 Aug. 2019]. Ponemon Institute. 2018Cost of a Data Breach Study: Global Overview. July 2018. Cyber Security Breaches Survey 2019. https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2019 42018. Cost of a Data Breach Study: Global Overview. Ponemon Institute. PwC’s Global Economic Crime Survey 2018: UK Findings. 2018 ibid.