Inspire Insurance Services are a Leading Provider of Cyber Insurance and Cyber Liability Insurance throughout the UK & Ireland.
As technology becomes increasingly important for successful business operations, the value of a strong Cyber Liability Insurance policy will only continue to grow. The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential exposures facing businesses.
Regulations, such as the Data Protection Act must also be considered, because a loss of sensitive personal information may subject you to fines and sanctions from the Information Commissioner. In an age where a stolen laptop or hacked account can instantly compromise the personal data of thousands of customers, or an ill-advised post on a social media site can be read by hundreds in a matter of minutes, protecting yourself from cyber liabilities is just as important as some of the more traditional exposures businesses account for in their general commercial liability policies.
Why Cyber Liability Insurance?
A traditional business liability policy is extremely unlikely to protect against most cyber exposures. Standard commercial policies are written to insure against injury or physical loss and will do little, if anything, to shield you from electronic damages and the associated costs they may incur. Exposures are vast, ranging from the content you put on your website to stored customer data.
Awareness of the potential cyber exposures your company faces is essential to managing risk through proper cover.
Possible exposures covered by a typical cyber policy may include:
Increased online consumer spending has placed more responsibility on companies to protect clients’ personal information.
Intellectual Property Rights
Your company’s online presence, whether it be through a corporate website, blogs or social media, opens you up to some of the same exposures faced by publishers. This can include libel, copyright or trademark infringement and defamation, among other things.
Damages to a Third-Party System
If an e-mail sent from your server has a virus that crashes the system of a customer, or the software your company distributes fails, resulting in a loss for a third party, you could be held liable for the damages.
A natural disaster, malicious activity or fire could all cause physical damages that could result in data or code loss. While the physical damages to your system hardware would be covered under your existing business liability policy, data or code loss due to the incident would not be.
Hackers can hijack websites, networks and stored data, denying access to you or your customers. They often demand money to restore your systems to working order. This can cause a temporary loss of revenue plus generate costs associated with paying the hacker’s demands or rebuilding if damage is done.
If your primary business operations require the use of computer systems, a disaster that cripples your ability to transmit data could cause you, or a third party that depends on your Cyber Liability Insurance services to cover Business Interruption, to lose potential revenue. From a server failure to a data breach, such an incident can affect your day to day operations. Time and resources that normally would have gone elsewhere will need to be directed towards the problem which could result in further losses. This is especially important as denial of service attacks by hackers have been on the rise. Such attacks block access to certain websites by either rerouting traffic to a different site or overloading an organisations server.
Cyber Liability Insurance is specifically designed to address the risks that come with using modern technology; risks that other types of business liability cover simply won’t. The level of cover your business needs is based on your individual operations and can vary depending on your range of exposure. It extremely important to work with a broker that can identify your areas of risk so a policy can be tailored to fit your unique situation.
Cyber Insurance with Inspire Insurance
As reliance on technology continues to increase, new exposures continue to emerge. As your business grows, make sure your cyber liability cover grows with it. Inspire Insurance Services is here to help you analyse your needs and make the right cover decisions to protect your operations from unnecessary risk. Contact us today at 02475 189625.
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Many organisations play down the risk of cyber threats to their business when in reality it's a risk that can have real consequences for businesses regardless of size or industry. We've compiled some common misconceptions below.
There’s no such thing as too small a business, every business to some extent will hold personal data about clients or hold money usually though online banking. 60% of medium companies suffered a cyber attack in the last 12 months (From the ABI committee meeting).
Most cyber claims do not involve personal data at all. The biggest threat is business email compromise. Through ransomware, this will more so target a client by not allowing them to access their systems. 50% of claims come from ransomware, where the cost to rectify this can range from £20k to £30k in a claim.
Through GDPR, this is not the case. Most companies will outsource their data to another provider, usually on a cloud or datapoint elsewhere. The outsourced provider is only responsible for the holing of the data and will only be responsible for notifying the client if there was an issue. Ultimately, the insured is still responsible for the data they have on clients.
General IT suppliers also do not have the skills required in the event of a cyber breach. Majority of claims seen for Cyber will arise from human error, which IT providers are not immune to. An IT provider could be the reason for a data breach or potential loss, so would you also want that same provider to be responsible for investigating an issue if it was them at fault? A cyber policy will offer the legal knowhow and expert knowledge to investigate and deal with these claims.
Having passwords, firewalls, anti-virus and backups is a lot like having a lock on a door. It can make it more difficult to rob, but doesn’t ultimately make the chance of a loss more difficult.
Things like backups are only good risk management tools, ultimately, they will not protect an insured in the event of a genuine breach that leads to a claim. One example was that if ransomware was launched into the system, when the next schedules backup commences, the ransomware will just transfer over into the backup, which will then cause all backups to also be encrypted with the ransomware.
Another point was some people believe that Apple Macs are more secure than any other Windows system, which is not the case. Both have the same exposure, Macs are just targeted less as they are not as common. Around 90% of hacks will be targeted at equipment that uses windows software, as it is more common in the workplace.
Cyber is currently in a soft market, so it is the best time to buy it whilst clients can. 99% of cyber claims are settled, which is a stat from the most recent ABI board committee meeting.
Average premium across all business big and small is around £1,200, working out as £100 per month. Another stat showed that clients are 9 times more likely to have a cyber attack than they are to have a burglary. As well as taking time to cover their tangibles such as their building, contents and cars, they need to give the same energy towards covering their intangibles as well.
One claim scenario showed that an insured had a claim successfully settled by their insurance with a payout of £80,000, for which they paid an annual premium of £350 for this cover.
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