Is Your Business Covered Against a Cyber Attack or a Data Breach? Here’s What Insurance You Need

Following last week's global cyber attack, small businesses should seek to get the right kind of cover to protect themselves

Is Your Business Covered Against a Cyber Attack or a Data Breach? Here’s What Insurance You Need

As we can see from the recent cyber attack on the NHS and other businesses across the world, cybercrime is on the increase and experts predict that attacks like these are set to become even more common place, affecting businesses of all sizes, across all industries. Staggeringly, over half of all British businesses experienced a cyber-attack in 2016, costing as much as £30bn.

Once a cyber attack has occurred it is often financially damaging for a business and can damage business reputations, with ongoing disruptions affecting the day to day running of a business.

This is not just an issue for big businesses. A recent study from the Federation of Small Businesses (FSB) reported that two thirds (66%) of small businesses have been a victim of cybercrime in the last two years, with those affected being victims on an average of four occasions.

Recent research revealed that the top threat perceived by a business is a cyber attack and in second place is the threat of data breach, with the average information breach setting businesses back over two days. In addition, there are also serious regulatory fines that will come into play in 2018, meaning that any businesses that experiences a data breach from 2018, will be subject to fines.

We can see the damage that the recent cyber-attacks have caused the NHS and we have heard about the strategies needed to safeguard businesses against any potential future attacks. It is, however, just as essential that businesses are adequately covered by their insurance policy, should the worst happen.

Does your business you have the right protection and insurance cover in place?

Your standard insurance policy will cover your businesses physical assets, but did you know that system downtime due to a cyber-attack is not covered by a standard business interruption policy?

The advisable safeguarding measure is to ensure that you have the right cyber and data insurance protection in place for your business. Cyber and data insurance cover provides your business with the full support from a team of IT forensic, legal and PR experts who are on hand to protect your reputation, investigate and diagnose the attack and to help you to get your systems secure and safely up and running again.

You also gain access to a team of specialists who can negotiate with the cyber criminals on your behalf, particularly relevant with ransomware attacks. These specialists can also advise you on how to ensure an attack doesn’t happen again.

Cyber and data insurance will also provide your business with financial protection from regulatory awards, fines or penalties imposed against you for data breaches and covers potential third-party damages and costs associated with an investigation in relation to a potential breach or notification.

Here are some examples of businesses who experienced recent cyber attacks and fortunately had the right cyber and data insurance in place.

Cyber attack examples

A third-party payment provider experienced a significant cyber-attack when two employees opened an infected word document which downloaded Crypto Locker Malware on to the businesses network.

This damaging data breach affected 5,000 of their customer record and users within the business were prevented from accessing their own data and the entire network went down for over 32 hours, incurring a claim totalling £48,000.

Another instance was when a business suffered a persistent Denial of Service cyber attack which affected all their websites. The wider issue became apparent once the websites were back up and running. As soon as the customers logged on to their accounts, they could view other customer’s details including all their financial information. This incurred a claim totalling £62,000.

Finally, a marketing agency’s back up tape was collected by the wrong courier and the back-up tape held details of 3.2 million members. This data breach incurred a claim costing £104,000.

Ultimately, businesses of all sizes need to ensure that they have adequate cyber and data insurance protection in place. To give you peace of mind and to ensure that your business is protected ensure that your cover includes the following:

  • Communication specialist costs
  • Instant Breach Response
  • Data restoration costs
  • Deployment of Extortion specialists
  • Financial protection against the costs of a Data Breach or Interruption
  • Telephone hacking cover
  • 24/7 helpline for notification, advice, and resolution
  • Immediate response within one hour of notification from our Breach Expert
  • Deployment of Forensic Services
  • Legal costs
  • PR advice provided by industry specialists, providing legal responses and PR consultancy to contain reputational damage

Allied Insurance Services provides tailored cyber and data protection insurance cover, with special schemes for small businesses, ensuring that all businesses are covered against any potential cyber-attacks and data breaches.

Visit www.alliedinsurance.co.uk or contact Alisdair Lindley at alisdair.lindley@alliedinsurance.co.uk or call 0844 815 6155 for further information.

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