Cyber Insurance – An Important Business Insurance

Cyber Insurance – An Important Business Insurance
While Cyber Insurance may feel like a ‘nice to have’, it could be more important than you think; here’s why:

Is your business at risk from a cyberattack?
In most small and medium sized businesses, responsibility for data control under the Data Protection Act lies with the owner of the business. The loss of personal or customer data can bring significant financial loss and/or prosecution. Any attacks could also significantly impair the company’s ability to operate.

Therefore, if your business:

• holds sensitive customer details such as names and addresses and banking details
• is heavily reliant on computer systems to conduct its business
• has a website
• is subject to a payment card industry (PCI) merchant services agreement

Then it could be vulnerable to a data breach or loss of vital business service.

In 2022 39% of UK businesses experienced a cyberattack. 83% of these attacks were phishing attempts.

For many businesses, a cyberattack can cause a huge amount of financial damage due to offline websites and stolen information, while also negatively affecting the business’s reputation.

What is covered by a cyber liability policy?

• Practical support in the event of a data breach
• Compensation for loss of income
• Payment of the costs associated with regulatory investigations
• Reimbursement for the costs of repair, restoration or replacement
• Defence costs and damage awards if you mistakenly infringe someone’s copyright
• Forensic Investigation costs
• Legal advice
• Notifying customers or regulators
• Support service – offering expert help and guidance
• Damage to reputation
• Claims for damages made against the business
• Civil Penalties levied by regulators
• Inadvertently libelling a third party in an email or other electronic communication methods
• Reinstatement of data
• Credit monitoring to affected customers
• Compensation costs
• Actively work with the business to minimise losses

Without a cyber liability policy in place, businesses will have to tackle these problems alone, without the legal advice or compensation that would come with a comprehensive cyber policy.

While your business may never be targeted by cybercriminals, it’s impossible to predict the future, and the risk – and potential fallout – is just too big to ignore. While Cyber Insurance may not seem like an urgent or immediately necessary cost, it can save your business a lot of trouble and money in the event of an attack, and the legal advice, compensation for loss of income, and reimbursement for repair costs may be the very things that keeps your business afloat in the aftermath.

Contact Weir Insurance Brokers
Finding the right cover isn’t easy. Rushing into the wrong policy can leave you at risk, or paying too much. Whether you’re looking to insure yourself or your business through an established insurance broker, call our friendly experts today on 0800 281 453 and we’ll work to find the right insurance solution for you.

Article Source: Weir Insurance Brokers

You might also like