Insuring your Business Against Cyber Crime

It’s the newest threat to business and it’s gaining publicity for all the wrong reasons. Cyber crime is a real risk for any sized business across all industries. If your business doesn’t have insurance cover for cyber attacks, then you are at risk of loss and damages that could cripple your business.   

What is Cyber Crime?

A cyber crime is any criminal activity using a computer or network connected device. Cyber attacks can take many different forms, including:

Hacking: unauthorised entry to a computer system to steal data or change the system

Virus & Malware: malicious software that can damage or compromise computer systems

Phishing Emails: tricking computer users to reveal sensitive information such as passwords

Denial of Service: flooding a system to overload it so legitimate traffic can’t gain access

Ransomware: blocking access to a computer system until a ransom is paid to unlock it

Identity Theft: using someone’s identity to steal money and obtain loans in their name

Protection with Cyber Insurance

Unfortunately, many cases of cyber attack are impossible to safeguard your business against. You can, however, take out insurance to cover the cost of damage caused. Some of the costs a business may occur following a cyber attack include:

• Loss of revenue or sales due to systems not being available
• Mandatory notification of customers advising of a possible breach of their details
• Public relations costs due to brand damage
• Consultant fees for data restoration  
• Improvements to computer security to help guard against future attacks
• Any compensation, settlements, fines and court costs resulting from the attack

General business liability insurance doesn’t provide coverage against cyber crimes because damage to property or persons hasn’t occurred. A dedicated cyber insurance policy is needed. You should make sure you have taken measures to protect your business as much as possible before applying for a cyber insurance policy including:

• Keeping anti-virus and malware programs up to date
• An off-site backup system so that data is restored quickly   
• Up to date firewall technology to alert and prevent attacks
• Company policy about cyber security and regularly training staff to recognise signs of attack
• Requiring all employees to use strong passwords
• Security of devices when staff have taken them off-site
• Regular risk assessments and testing to check robustness of security

Does your Business Require Cyber Insurance?

If you are connected to the internet, use emails, store data or any kind of network/ computer use, your business is at risk of cyber crime. The level of risk is influenced by the size of your business, the amount of personal data you hold, the level of computer security and your industry.

Different cyber criminals will target different businesses. Some are looking for the high rewards of stealing large volumes of data from big businesses. They know they can sell the data or ask a large ransom from a company that can pay. Criminals have a harder time breaking into systems of larger companies as they are usually better protected than smaller businesses.   

Some small business owners are unaware of the risks and how they can protect themselves against cyber crime, so they have few security systems in place. These businesses are easy pickings for a criminal with only limited skills needed to break in.