A cyber attack against your business is not simply a case of if, but when.
Research by the UK government suggests that nearly a third of UK businesses fell victim to cyber attacks or security breaches last year, with the figure closer to two-thirds for medium and large firms. Despite this, many business owners continue to underestimate the risk and fail to secure the correct level of insurance cover.
Among those businesses targeted, the most common attacks were:
- Phishing emails (80% of those experiencing breaches or attacks)
- Others impersonating their organisation online (28%)
- Viruses or other malware, including ransomware (27%)
It is a common misconception that only large businesses are targeted by cybercriminals, but if your business stores personal data, has a website or IT system, uses cloud-based services or takes payments electronically, a cyber attack is a very real risk. Not only could you face large fines and significant loss of income, but your organisation’s reputation with partners, suppliers and customers could be damaged irreparably.
What is cyber and data insurance?
Cyber & data insurance (sometimes referred to as cyber risk or cyber liability insurance) provides cover in the event of a data breach, cyber extortion, including the cost of professional assistance to mitigate the loss, the cost of fines and in some cases ransom payments. It also protects your business from evolving cyber threats and risks associated with data and any claims and investigations made against you from your cyber and data liability.
Cyber & Data Insurance provides three main areas of cover:
- business losses
- third party claims made against you
- financial crime and fraud cover
Do I need a cyber and data insurance policy for my business?
Commercial insurance policies such as general liability, property and professional indemnity usually exclude cover for digital assets and losses as a result of cybercrime. This is why we recommend a standalone cyber and data insurance policy that is tailored to your business needs.
We work with businesses of all sizes across a variety of sectors and can advise on the exact level of cover you need to get your business up and running again with the minimum amount of disruption. No business is immune to cybercrime, but having the right policy in place will ensure you have vital support available when you need it.
Businesses conducting business online, including those who hold personal data on clients or employees, should consider purchasing Cyber & Data Insurance.
Cyber insurance v crime insurance: what’s the difference?
Cyber & data insurance is often referred to as cyber & crime Insurance. However, this can often be misleading. Crime Insurance provides cover for fraud caused by employees and fraudulent acts by third parties such as theft, social engineering, forgery or extortion and the associated expenses. As the majority of fraud and dishonesty is now committed using computers, this can cause confusion.
Our latest guide details the difference between the two, the risks associated with some of the most common types of attacks, and examples of recent claims. You can download a copy below, or contact our team on 0113 244 8686 for more in-depth advice.