Cyber Liability Advice: How to protect your business from a cyberattack
A cyberattack can be defined as an act by any person or entity using technology to expose your business financially or reputationally.
As businesses and consumers embrace new technology and communication methods, the potential for of cyber-related incidents continues to grow.
Attacks can take many forms from ransomware to viruses, but the majority start with just a simple email and a fraudulent link. This is known as phishing and you can find out more about phishing here
In the first three months of this financial year (April – June 2021), the ICO reported that there were 2552 data security incidents with 688 of those related to a cybercrime. Phishing attacks accounted for 41.28% of these, making it the most popular approach. It is also one of the easiest to fall prey to if safeguards aren’t in place, because anti-virus software doesn’t detect it.
This type of Cybercrime can affect any business, no matter its size, but most companies do not have pre-emptive measure in place, including adequate insurance arrangements.
In fact, according to the Department for Digital, Culture, Media & Sport Cyber Security Breaches Survey 2020 only around three in ten businesses (32%) report being insured against cyber risks in some way.
The good news is that the National Cyber Security Centre has created Cyber Essentials, a Government backed scheme, aimed at helping you safeguard your organisation against the most common cyber threats.
There are two levels of certification available, which will provide you with peace of mind that your defences will protect you against the vast majority of cyberattacks.
Protecting yourself with defence strategies is highly recommended, but you should also consider reinforcing this with a comprehensive insurance programme. This will reduce the impact of any damage, should an incident occur, because even with a robust plan in place, cyberattacks are becoming more sophisticated and constantly evolving.
According to data provided by CFC Underwriting to BIBA, more than 95% of cyber claims (first party losses) fall into three categories.
- Theft of funds
- Theft of data
- Damage to digital assets
Whichever category the claim falls under, the common element is that there will be a direct financial loss to the company, as they respond to the incident. For example, funds may have been stolen, systems may need to be restored, and there may be costs associated with limiting reputational damage. These costs would be met with a cyber insurance policy in place. Our example scenarios highlight the benefits of cyber liability insurance in real world situations.
As an independent broker, we can talk to you about your cyber risk exposure and offer our recommendations for a comprehensive insurance programme placed with one of our carefully selected A rated insurer partners. We will find the best solution to meet your particular requirements – call us on 01480 272727, complete our enquiry form or email us at firstname.lastname@example.org to talk to us about your cyber risk exposure.
For more information on why cyber insurance should be part of your risk management programme, read our blog here.
Learn more about what’s included in a cyber liability policy here.