Monthly Archives: December 2014

cyber

Why Does Your Business Need Cyber Liability Insurance?

Every business needs to be insured. It doesn’t matter whether you have a high street store or one that is purely online, not having a sufficient level of cover to protect both yourself and your clients is an unnecessary risk. The fact that you can buy cyber insurance cheaply online is further evidence that every internet business should have adequate protection against the unknown.

We want to show you 3 reasons why cyber insurance is vital for any business that operates online.

Data Breaches Happen Regularly

So you might have a fancy firewall and anti-virus system installed and you might have what you think are secured servers that store details about your clients. This is all well and good but data breaches happen all the time.

Let’s look at some stats.

81% of large businesses and 60% of small companies in the UK suffered some form of cyber-attack in 2013. This was either an attempt at gaining unauthorized access to data or a full blown invasion with details stolen. In fact, a small business in the UK will lose between £65k – £115k on average as a direct result of a security breach

Both Big And Small Businesses Are Vulnerable

Just recently JP Morgan, a leading financial services firm with interests across the globe, was the victim of a data breach that saw 76m customers being exposed to spam emails.

For hackers who want to access data it doesn’t matter how big or small the business is – if they want to steal email addresses and customer information then the size of the company isn’t going to put them off.

This is why it is even more important for small businesses to be covered. They often don’t have the resources themselves to cover any liability that can arise from a malicious attack but buying cyber insurance can provide this protection.

A Traditional Business Insurance Policy Isn’t Enough

The opinion of some businesses is that if they have traditional business insurance then why buy cyber liability insurance? Well the simple answer is that most traditional forms of business insurance just don’t cover cyber-attacks and data loss.

Only 35% of small businesses in the UK have sufficient cover to deal with data loss or a security breach. That leaves 65% of small businesses that don’t.

They are putting not only their customers at risk but also themselves too.

If you run a business, whether it is big or small, and you are pondering the question ‘do I need cyber insurance?’ then the resounding answer is yes. There is no point in putting yourself or the people that put their trust in you at risk.

We will leave you with one more statistic.

The cost of cyber theft and data loss to UK businesses is estimated to be around £21bn per year. That is bigger than the GDP’s of Paraguay and Jordan. Getting a cyber liability insurance quote will not only set you on the path to protecting your customers but will also preserve your businesses’ own reputation as well.

 

What is Third Party Cyber Insurance?

When a data breach occurs much of the attention is focused on the company. How did it happen, why did it happen and what steps have been taken to prevent it from happening in the future?

But what about the customers who’s data has been compromised?

This is something that is often overlooked not least of all by businesses that don’t have an adequate level of third party cyber insurance. We want to look at what this is, what it covers and why you need it for your business.

What Is Third Party Cyber Insurance?

If first party cyber insurance is predominately there to deal with protecting your own business then third party cyber liability cover is to protect your clients.

One of the big problems that companies face after a data intrusion is from their own customers. People put their trust in businesses to keep their details safe and when this trust is broken (even if it is through no fault of the company) then there will be a massive fallout.

What Does Third Party Cyber Insurance Cover?

A main area that this kind of cyber insurance policy focuses on is issues that arise from litigation and legal expenses. Most cybercrimes and data intrusions only require the customer to change their password however some result in stolen details, credit cards and other personal information.

Civil damages and costs are covered under third party insurance as is the act of notifying the customer in the first place. Furthermore if the theft involved credit cards then third party insurance can cover credit monitoring costs to ensure that those affected by the event don’t see their credit rating being negatively hit.

Protecting Your Clients

At the end of the day no business will be successful without its clients. This is why third party cyber insurance cover is so important.

It is all very well covering yourself and your business however if you don’t actively try and protect your customers as well then it will be difficult for your company to recover from a cyber attack. With third party insurance you can give your customers the peace of mind that they are being protected as well even if their details are compromised.

For any company – whether they are large, small, been in the business for 20 years or are just starting up – having both third party cyber insurance and first party cyber liability cover makes good business sense and reduces your own liability.