Is your business at risk of a cyber attack?
As businesses are forced to make a cut and scale back their spending in light of the cost of living crisis, it seems that cyber insurance is one of the most common products where they choose to drop their cover. This choice may by made by businesses who do not see cyber cover as urgent or necessary, but with evolving cyber threats and the potential for disaster in the wake of such an attack on your business, this is a highly risky expense to cut.
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 it subject to a payment and car industry (PCI) merchant services agreement
Then it could be vunerable to a data breach or loss of vital business service.
For many businesses, a cyber attack can cause a huge amount of financial damage due to offline website and stolen information.
Without 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.
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
Defense costs and damage awards if you mistakenly infringe someone copyright
Forensic investigation cost
Legal advice
Notifying customers or regulators
Support service
Damage to reputation
Claims for damages made against the business
Reinstatement of data
Compensation cost
Ensure your business has cyber cover in place
While your business may never get targeted by a cyber crime, its impossible to predict the future and the risk. 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.
Comments