Does My Business Really Need Cyber Liability And Data Breach Insurance?
The threat of a cyber attack can be a worrying thought for business owners, yet the stigma of ‘it won’t happen to me’ is still fairly common. However, as business operations are increasingly relying on technology and the electronic transfer and storage of data, the number of potentially vulnerable access points for hackers is growing.
Another consideration for businesses are laws and regulations around data security. The Data Protection Act and upcoming GDPR mean that businesses will face large fines from the Information Commissioner if their data is unsecure. With this in mind, it is becoming increasingly important for businesses to have a strong cyber liability plan in place.What does cyber insurance cover?
- Data breaches – the use of personal or sensitive data in an unauthorised manner.
- Business/network interruption – if your business faces an attack it is likely that your day to day operations will stop until the attack has been resolved. This is likely to result in a loss of revenue, as time and resources that would normally be used elsewhere, will be used to solve the problem.
- Intellectual property rights – Your businesses online exposure can open you up to copyright and trademark infringement.
- Damage to a third-party system – if a malicious email is unknowingly sent from your businesses server, that then damages a third-party system, your business could be held liable.
- System failure – malicious activity or a natural disaster could cause physical damage, which may result in data or code loss.
- Cyber extortion – hackers can hijack your businesses website, network or stored data, denying you access until you pay them a fee to restore your system back to a working version. As well as the large fine, this can cause temporary loss of revenue.
Cyber liability insurance is specifically designed to protect modern day businesses operating in the digital world, and the risks that come with using modern technology. Other types of business liability insurance simply do not provide adequate level of cover should your business face a cyber-attack. So yes, your business should consider cyber liability insurance.
The level of cover your business needs is completely dependent on the nature of the business, the amount of data held, and the likelihood of exposure. Here at Cyberguru we can provide you with a free quote based completely on your business needs. For more information on cyber liability insurance get in touch with us today.