The risks and impacts of cyber attacks and financial fraud are becoming an increasing headache in Britains boardrooms. Steve Fletcher, Manufacturing Specialist at UK insurance broker Arthur J. Gallagher explains how a cyber insurance policy can best protect your workplace from online fraudsters.
Cyber and financial crime is on the rise, with fraudsters targeting businesses anytime, anywhere with many unprotected. The Cyber Security Breaches Survey 2016* revealed that 65% of large firms detected a cyber security breach in the past year, with the average cost of an attack amounting to £36,500.
A tailored cyber insurance policy can protect your firm against the multiple impacts of a cyber attack, as well as manage the investigation process. From identifying the breach and neutralising the threat, to providing your business with legal and PR advice, while covering the costs to notify those affected, as well as any fines, the benefits could be priceless:
Your reputation is strength
Compromised systems can result in a loss of loyal customers and a damaged reputation. Cyber liability insurance ensures the costs are covered in engaging the help of a dedicated public relations firm as well as the loss of future sales that arise as a direct result of loss of custom.
Data is your most important asset
Data is not covered by most standard property insurance policies. A cyber policy with comprehensive cover will include data restoration, no matter how the loss occurred.
You can be held liable for any third party data that is lost
Cyber liability insurance ensures protection against non-disclosure agreements and contracts that contain indemnities and warranties in relation to this type of breach, as well as consumers seeking legal redress in the event of loss of data.
Operating systems are critical
All companies rely on operating systems to manage their business, but in the event of your business suffering unplanned downtime as a result of a computer virus, hacking incident or even malicious employee attack, a traditional business interruption policy may not respond. Cyber insurance provides you with cover for loss of profits associated with a systems outage caused by such attacks.
Portable devices increase the risk of loss or theft
Cyber insurance can help to cover the costs associated with breaches of data should a portable device, such as a laptop, become lost, stolen or the victim of a virus.
Social media claims are on the rise
Information shared online can give rise to liability for businesses that are responsible for the conduct of employees on social media sites. Should claims arise as a result of leaked information, copyright infringements or defamatory statements, cyber insurance can help to cover associated costs.
Whilst strengthened security procedures, good digital housekeeping and high user awareness will reduce the likelihood of your business suffering from an attack, it does not guarantee that you will not be hit, or mitigate the damaging effects of a breach. This makes cyber liability insurance a must have to protect against the potentially crippling financial effects of a security breach.
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