Cyber-crime is the world’s fastest growing criminal activity. The UK is the country most frequently targeted by cyber criminals across Europe with cyber-attacks rising 40% in the space of a year. But isn’t it just for the larger conglomerates?
Any business, large or small that depends on IT infrastructure could be at risk of cybercrime. If you hold sensitive customer data or you rely heavily on IT systems to operate, you are exposed to potential threats. Recently a small family business in St Ives, Cambridgeshire lost more than £26,000 after falling victim to a sophisticated email fraud. Cybercrime has evolved from simply hacking a computer network and has grown into a complex web of various activities to bring loss, destruction or reputational damage to companies through a variety of ways including extortion, illegally accessing sensitive information and theft. More often companies can simply be exposed by failing to implement any security and therefore causing breaches in data security giving criminals access through their own negligence.
Who needs cyber insurance?
You will need to consider cyber insurance if you:
- Hold sensitive customer details such as names, addresses and banking information
- Rely heavily on IT systems and websites to conduct your business
- Process payment card information as a matter of course
What does cyber & data insurance cover?
Your broker will go through your specific requirements but generally a good cyber & data insurance policy will cover:
- Breach costs
- Crisis containment
- Cyber Business Interruption
- Cyber Extortion
- Hacker damage
- Privacy protection
- Multimedia liability
- Cybercrime – theft of money or digital assets
- Telephone hacking
How can I manage my own risks?
Insurance policies are only part of the answer. Understanding your exposures and systematic resilience will enable you to apply robust processes that you and your employees can implement to mitigate your exposure. For example:
- Map your critical data
- Explain the importance of data security to employees
- Develop a cyber incident response plan
- Review your partners’ cyber security measures
- Work with policy makers and regulators
Building your cyber resilience is an ongoing process and one that requires commitment. Lori Bailey, Global Head of Special Lines at Zurich says “The goal should be to develop resilience and protection, because as cyber risks accumulate it becomes more difficult to anticipate them all.”
If you are concerned about your risks or would like to know more about cyber insurance please get in touch with the team on 0121 213 6420 or send us a message by clicking here.