Cyber Liability Insurance Tips
It’s time to talk about cyber liability insurance.
There’s no turning back now, we live in a digital age in which technology plays a pivotal role in our personal and professional lives. No matter what sector you work in, businesses use computers and the web to store company information, accounts, employee details, and much, much more.
Unfortunately, this also means that businesses are now incredibly vulnerable to cyber-attacks that could lead them to accidentally leak incredibly sensitive details (employee or customer account details, addresses etc.).
Indeed, as recently as the 14th of August 2016, Sage (one of the largest accounting, payroll and payments software companies in the UK) was reported to have suffered a data breach that could potentially have compromised the data of around 280 small and medium companies in the UK.
Cyber-attacks can affect small, medium and large multinational companies (such as TalkTalk who lost £60m and 101,000 customers due to a cyber-attack). In fact, according to findings in the 2015 Information Security Breaches Survey, 90% of large organisations and 74% of small businesses reported a breach in 2015.
It’s therefore of fundamental importance to protect your business from cyber-attacks: a topic we wrote a brief guide on here. To quickly recap, here are some things that you can do to help protect your business:
- Keep all of your hardware and software updated
- Protect yourself with decent anti-virus software
- Train your staff to recognise and avoid online threats
- Enforce a strict password policy
- Restrict usage in the workplace
- Encrypt your data
Nowadays, unfortunately, hackers continually develop newer and better ways of hacking into our devices and networks. While protecting your data by teaching staff best practice security measures and updating your computer systems regularly is a good step to take, it’s a very good idea for businesses to have Cyber Liability Insurance – or to make sure that your current policy covers you for any cyber-attacks – as malicious, targeted attacks remain the highest cause of data breaches.
What Can Cyber Liability Insurance Cover?
Depending on your policy and/or provider, cyber insurance can cover your business for the following:
- Cloud cover
- Virus damage (to rebuild your computer systems and restore company data)
- Legal expenses
- Identity Fraud
- Intellectual Property (in the event of a claim for intellectual property rights infringement for example)
- Cyber Crime (if you have been targeted by phishing scams, wire fraud, telephone hacking, identity theft, etc.)
- Business Interruption
- Regulatory Investments (in the event of a confidential data breach this covers the costs of investigations and fines from data protection regulators)
- Crisis Communication (in order to maintain the company’s reputation, usually with specialist PR).
- Data Loss (to cover the costs of data forensics, restoration, recollections & recovery).
- Cyber Extortion
- Specialist Services ((in the event that you have specialist computer systems that need repairing by a specialist).
According to the Information Security Breaches Survey, only 39% of large organisations and 27% of small organisations have insurance that would cover them should a data breach occur.
IT’s essential that you know what you are covered for BEFORE anything happens, as not being covered can be extremely costly indeed.
Why Use Loss Assessors in the Event of a Cyber Attack?
Cyber losses and data breach claims are very intricate cases to deal with. It’s necessary to prove that the breach happened in the first place (you’d be surprised how few traces some of them leave), the exact time of the incident, its ramifications (immediate and delayed repercussions for your business) etc.
There’s also the difficult and time consuming tasks of assessing exactly what damage the digital infraction may have cost your business, what data was lost and how to recuperate it.
Once you’ve proven all of the above, you need to check that you are fully covered. Unfortunately, this is often not the case. You need to check what you are covered for by paying very close attention to the wording of your policy, in case your claim could be invalidated by something that you overlooked.
The thing is, you need to carry all of this out while trying to continue with business as usual so as to avoid accruing even more losses – a challenging task.
Our loss assessors have invaluable experience in dealing with cyber loss cases. Our experts have worked on cases involving hacking, viruses, malware, and more general ‘denial of service’ issues. They’ve also dealt with situations requiring them to bring in specialist IT consultants, such as forensic IT investigators, to fully ensure that your claim is as strong as possible. Generally speaking, the cost of these external consultants is covered under the terms of the policy, meaning that you get excellent service at no extra cost.
In terms of assessing how the breach has affected your business, we consider both short and long term possible effects. For instance, immediate damages like loss of data and damage to your computer system or server, or long-term ramifications that extend beyond the specified maximum indemnity period (company reputation management for example).
Having your personal data stolen can leave you feeling vulnerable, but we take the stress out of dealing with your cyber loss claim, offering the best advice to get you back to business.
For more information on these services or on cyber liability insurance in general, contact us here or call us on our 24/7 helpline 0844 544 1699.
Phone our 24/7 helpline now for a free consultation on how we can help your claim. We give you an honest and open assessment, with no obligation, so you can find out quickly and easily what we can do for you.
How it works
Appointing Harris Balcombe gives you access to our unparalleled expertise. We directly employ chartered accountants, chartered surveyors and chartered loss adjusters, putting together the right team to handle your claim and making sure you get the best possible outcome.
Call our 24/7 helpline on 0330 022 9179 for a free no obligations assessment