Cyber-crime is a hot topic at the moment with recent WannaCry ransomware attack affecting companies worldwide.
Experts such as James Burns (cyber product leader at CFC Underwriting) suggest that the SME sector, in particular, is at risk from such attacks. He explains that whilst “larger organisations have invested heavily in cyber security” the number of “attacks against smaller companies have also increased”. It is thought that this is because SME’s lack the resources and infrastructure to guard against the threat and are therefore being targeted as more vulnerable to cyber-crime.
There are a number of simple steps that your business can take to protect your business against such cyber-attacks, however, it's vital that your business has a robust insurance scheme in place so that it is covered should your prevention methods fail. Our nominated insurance partner suggests that Cyber Liability Insurance is the best way to protect your business against cyber risk.
What is Cyber Liability Insurance?
Cyber Liability Insurance is designed to protect your business in the case of a data breach or if it is attacked by hackers.
What does Cyber Liability Insurance cover?
Cyber Liability Insurance cover may overlap with cover from existing policies and it can sometimes be difficult to get to grips with what exactly is covered by each policy. For this reason, it is crucial that you work with a trusted insurer and discuss your requirements in detail.
It may be that some of your standard business insurance policies including those for business continuity, business owners, third-party supply chain issues and professional indemnity cover your business for cyber incidents in some form. For example, if your business was to lose electronic data as a result of a computer virus or hardware failure, you may find that your Business Owners Policy covers you for this. However, taking out a stand-alone cyber liability policy is the best way to be confident that your business is protected against the full range of cyber liability risks.
When approaching your advisor for Cyber Liability Insurance cover, we recommend that you address the following areas of cyber risk:
- Data breach/privacy crisis management cover
- Loss or corruption of data
- Business interruption
- Identity theft
- Multimedia/Media liability cover
- Extortion liability cover
- Network security liability
The key to securing the right Cyber Liability Insurance for your business is to fully understand the cyber risks your business faces. Your insurance advisor can ensure that your policy is unique to your specific business requirements.
To be put in touch with an expert who can review your business insurance needs, contact BCR Associates today on 03330 433233.