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Cyber Insurance is crucial in the new age of remote working

Four in ten businesses and a quarter of charities reported cyber security breaches or attacks, according to the government’s most recent Cyber Security Breaches Survey (2021).

    Remote working has become the norm for lots of companies across the UK, making us all increasingly dependent on cloud-based applications and access to our devices.

    Unfortunately, our reliance on technology comes with a significantly heightened risk of security incidents and data breaches.

    Many business owners believe they’re covered for Cyber Insurance within another policy, usually Business Interruption or Professional Indemnity.

    But, often, such policies offer only minimal levels of financial protection and cover a very limited range of cyber threat scenarios, leaving businesses exposed to the risk of costly regulatory fines and compensation claims.

    Who needs Cyber Insurance?

    As digital attacks grow in their sophistication and success rate, all businesses need to be prepared for the possibility of cyber breaches, malicious software, ransomware attacks, phishing scams, supply chain attacks and denial of service attacks.

    If your business relies heavily on IT systems and websites, if you process payment information or if you hold sensitive customer details such as names, addresses or banking information, a specialist Cyber Insurance policy should be a serious consideration.

    Why do I need Cyber Insurance?

    In the event of a successful cyberattack, employees may be prevented from accessing your IT systems, customers could be blocked from their accounts, data might be lost or stolen and a company’s reputation may be damaged.

    A good Cyber Insurance policy would help your business recover as quickly and easily as possible, often offering technical assistance to minimise disruption and potentially providing expert help to communicate with staff, customers and other stakeholders.

    What does Cyber Insurance cover?

    Cyber Insurance protects you from the financial implications that may be incurred as a result of a cyber-attack or incident.

    Policies are available to cover first-party risks, such as loss of revenue from network downtime and the cost of repairing and replacing IT systems, alongside third-party risks, such as legal costs and compensation payments following a breach of security or privacy.

    What else can I do to protect my business?

    In addition to understanding the liability coverage and financial protection provided by existing insurance policies, business owners can reduce their susceptibility to security incidents by appointing an expert to review and tighten internal cyber security practices.

    Communicating details of digital threats on a company-wide basis, as soon as information comes available or staff report them, is essential along with regular training for employees showcasing real-life examples of scams.

    It’s important to tailor the scope of your Cyber Insurance to the complexity of your potential cyber risks.

    Give us a call today and make sure your business is covered for the year ahead.

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