What is...Cyber Liability Insurance?
The term 'cyber liability' has been hitting the news headlines more and more over recent months and it's not only the major corporations that should be concerned advises Alan & Thomas.
Statistics show that 40% of cyber-attacks are directed at firms with fewer than 500 employees and a recent survey by Close Brothers showed that two thirds of local SME owners described themselves as being very concerned about the impact this crime could have on their business.
So, what is cyber liability insurance and what does it cover?
Cyber Liability Insurance provides businesses with protection against financial loss resulting from the loss of personal and/or corporate data. Cover can include first and third party risks ranging from the loss of a single laptop or file to the hacking of a company's website or network. Cover provides protection from the start including legal advice, fees and court costs to defend right through to rebranding your business to put you back to where you were before the event occurred.
On a basic level, any company that handles data – whether on employees, customers, suppliers or business partners – is obliged to take effective measures to ensure that data is safe and secure. Theft of such data from your organisation's electronic system could result in regulatory investigations and claims as a result of breaches of data protection and privacy laws.
Hackers use 'malware software', more commonly recognised as viruses, that silently monitor the activity on your computer. These are transmitted from links or attachments within emails or from unsafe applications downloaded from untrustworthy websites. Once installed onto a computer, they can quickly gather and transmit all kinds of sensitive information to cyber crime gangs all over the world without you being aware. A problem for individuals but for businesses that hold client data electronically, or provide a service through the means of technology, the threat and cost is very real with the average data breach claim for UK small businesses, according to insurers, currently registering between £35,000 and £65,000.
There are various levels of cover available depending on the circumstances of the business. Cover can be relatively inexpensive and can be added to your insurance programme at any time. Please contact us on 01202 754900 if you would like more information or a quotation.