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Cyber Liability Insurance – Know Your Risk
According to the National Cyber Security Centre (https://www.ncsc.gov.uk) 65% of large UK firms detected a Cyber attack in 2016 and with only 9% of UK SMEs having insurance in place to protect against a Cyber threat (http://smallbusiness.co.uk) there has never been a better time to make sure your business is protected.
The impact of Cyber attacks can have long reaching consequences – in January this year Lloyds TSB hit the headlines following a cyber attack which potentially blocked around 20million customers from accessing their bank accounts and in March the largest web company Google were hit with a phishing attack allowing hackers access to customer account records.
Despite being the shortest month of the year, February, saw a record number of cyber attacks and data breaches from human error (https://www.itgovernance.co.uk/blog/list-of-data-breaches-and-cyber-attacks-in-february-2017/). What is most alarming are the number of data breaches originating from human error rather than a sophisticated Cyber attack, it is now vital that you ensure you and your employees know how to avoid falling for scam emails and have systems in place to cross check any information.
It can be difficult for businesses to effectively handle cyber-attacks and impossible to predict when they will happen. Many businesses rely on anti-virus software installed on their machines and implement firewall protection on their internet networks, however this is no longer enough to defend against the ever evolving systems cyber criminals employ to launch their attacks.
This is where Cyber Liability Insurance comes into play, assisting your business with investigating any breach, covering any losses involved and assist in paying legal costs and regulatory fines.
Cyber Liability Insurance first made its appearance in the insurance market nearly 10 years ago but has only recently started to be taken up in volume due to the growing threat businesses face from Cyber criminals. However, a new EU regulation, the General Data Protection Regulation (GDPR), will come into effect on 25th May 2018 making Cyber Liability Insurance essential. Under these new regulations it will be mandatory for businesses to report any data breaches and without a proper insurance policy in place you could face huge fines for any breach.
In October 2015, Talk-Talk, found itself subjected to a ‘significant and sustained’ cyber attack where more than 150,000 customers had their personal details accessed, however, this was only the start of their problems: in February 2016 it was reported that the company had lost more than 100,000 customers as a result of the attack, and in October 2016 the company received a £400,000 fine for its ‘failure to implement the most basic cyber security measures’. Hans Allnutt, head of cyber and data risk at DAC Beachcroft, told Post magazine(http://www.postonline.co.uk/post/analysis/2482113/cyber-regulation-cyber-s-new-rules) that GDPR would drive uptake of CLIC. “Companies will face significant costs associated with breach investigation, reporting, heightened exposures to litigation and regulatory sanctions. Cover for these financial losses is a key selling point of a cyber insurance policy”
So what does Cyber Liability actually cover?
The fastest growing type of Cyber policy covers against data breaches, Cyber Liability can assist your businesses by:
• Providing expert analysis to investigate any breach
• Handle the notification to customers and regulatory bodies
• Cover any losses incurred
• Provide credit monitoring support to any customers affected
• Assist in paying legal costs and regulatory fines
Most policies also include cover for:
• Cyber extortion – covering losses following the threat of extortion and provide expertise and advise to help deal with the incident. Unfortunately in some cases there is no alternative but pay the ransom demands in order to get your files back
• Crisis containment – access to expert support to mitigate reputational damage. Following a breach it is vital that a prompt, confident communication is sent out to minimise the damage to a firms reputation. Most insurers provide access to leading public relations companies who can provide support from developing communication through to a 24/7 press office.
• Multimedia liability – covering costs incurred if you mistakenly infringe copyrighted material or accidentally libel a third-party in an email or other electronic communication.
• Cyber business interruption – covering the loss of income if a hacker targets your systems and prevents your business from earning revenue, including losses caused by damage to your reputation
As experts on Cyber Liability, Clarke Williams can advise you on the correct policy for your business and with our partnerships with leading IT security firms and Risk Management firms we can help provide your business with the right advice. Cyber security should be at the forefront of every business if you :
• Hold sensitive information on your customers – name, address, etc
• Have an online presence
• Process or storing card payment information
• Rely on IT systems to operate your business
For cover from as little as £500 can you really afford to not have cover?
Contact us to find out more about Cyber Liability Insurance and how our specialist team can help protect your business.
01732 252898 or firstname.lastname@example.org
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Clarke Williams Ltd are authorised and regulated by the Financial Conduct Authority under reference 758683. The Financial Conduct Authority’s Register can be accessed through http://www.fca.org.uk/ . We are registered in England and Wales with Companies House under number 10317065. Our registered office address is Blue Bell Court, Sovereign Way, Tonbridge, Kent, TN9 1FU.