It sounds like something from a sci-fi movie, but in an increasingly digitised world everyone needs to be aware of the threats from cyber sabotage. Attacks on big corporations and institutions – such as the one that affected the HSE in May 2021 – hit the headlines, but you may be less aware that smaller businesses are also susceptible. This is where insuring yourself against cyber attacks comes in, and there has never been a more important time for medium- and small-business owners to consider it.
It helps protect your reputation
Your standing with your customers will be negatively affected if you have a cyber breach that involves their data, or even if it affects your ability to trade efficiently. Insurance can help with PR costs associated with repairing your reputation.
It saves you from financial damage
Cyber liability insurance helps you in the event of your business experiencing a cyber security breach. Repercussions from this could include legal fees, the costs associated with investigating the incident, recovering lost data, and the suspension of normal business working until the attack has been completely overcome.
Cyber crime can affect most businesses
In an increasingly online world, most businesses hold a wealth of data about employees, market strategies, business plans and projections, client records, payroll and banking information, and even medical records. All of this is sensitive information and therefore at risk of theft. Any firm that stores customer emails, has a customer database or even just uses a computer network for day-to-day operations is at risk and should investigate cyber security insurance.
Small operations are particularly at risk
The majority of cyber attack victims are SMEs, as they may be slower to protect their IT due to a lack of the applicable skill sets. In a small firm, expertise lies in the service they are offering and not necessarily in the connected IT devices they rely on. Availing of expert help is essential, though, as a catastrophic breach of cyber security can lead to the end of a company.
Attacks can come from within the company
This human aspect of a data system is the hardest to secure. Disgruntled employees, or even those that might have been influenced by others, are also a risk to businesses. Even if there is no ill intent, people can fall victim to email or online scams just as easily while at work as they can at home.
Your insurance broker will recommend cyber coverage
Talk to your broker about insuring yourself against the fallout from cyber attack. At Britton Insurance, we recognise the threats that modern businesses are facing. Our dedicated and experienced team will assess your needs and tailor a business insurance policy that gives you the right coverage, at the right price.
Not all cyber insurance coverage is the same, but basics often include coverage for: Data breach; Security breach; Cyber extortion; Legal fees; Theft coverage; Fraud coverage; Privacy liability; Crisis management; Forensic investigation; Data loss and restoration; Business interruption. Also be aware of any exclusions that apply, including hardware/software issues – these vary from one provider to another so talk with your broker to understand what coverage you will receive.