Why should you take out cyber liability insurance?
Here are our 10 reasons why every organisation should consider protecting themselves against a data breach by taking out specific cyber insurance.
- Perhaps most importantly, traditional insurance policies won’t cover a loss of data due to a cyber-attack. So if you were to suffer one, the consequences could be even more costly. However, a specific cyber policy will cover you against the consequences of a data breach.
- Sectors which are particularly at risk include the hotel, travel and leisure industry, retail, education, lawyers, accountants and companies with US operations. However, in light of current cyber-attacks, anyone who holds information about their clients or customers is at risk.
- Cyber insurance can cover the costs of regulatory fines, litigation, reconfiguring networks, re-instating security and restoring data.
- Big business isn’t the only target, 61% of data breach victims in 2016 were businesses with under 1,000 employees. (Source – Verizon’s 2017 Data Breach Investigations Report)
- Data loss needn’t be due to a direct hack, it could occur from opening an e-mail that downloads malicious software or losing a laptop or USB.
- In the event of a data breach, the costs of repairs to affected hardware can be covered by a cyber policy.
- Everyone affected will need to be notified in a way that restores their faith in the business and cyber insurance can cover the costs to do that.
- Engaging cyber risk specialists to investigate the aftermath of a data breach can be costly but cyber insurance can cover those costs.
- The loss of any electronic systems could cause chaos. A specific cyber policy will cushion much of the impact and provide cover for any loss of profits.
- Recently the news has been full of ‘cyber plots,’ from its suspected role in the US election to the widely publicised NHS event and the latest Pirates of the Caribbean movie being held to ransom.
While the larger organisations are likely to gain more attention in the national press, according to the UK Government’s Cyber Security Breaches Survey 2017, over two-fifths (45%) of all micro/small businesses have identified a cybersecurity breach or attack in the last year. They’re also less likely than medium/large firms to have cyber security measures in place.
Rather than run the risk of your business being in the same position, call us today and we can help you find the cyber liability cover that’s right for you.