Cyber liability insurance
Government data revealed that more than four in 10 UK businesses and two in 10 charities suffered a cyber breach or attack in the year leading to April 2018.
Some of the largest companies in the UK have made the headlines for suffering data breaches. Yet, smaller companies are also at risk of an attack due to having less robust security measures in place – and cyber attackers prey on these vulnerabilities.
Needless to say, a single breach can have disastrous consequences for a business. They could lose money, clients and consumer trust; they could have potential lawsuits filed against them and have their reputation tarnished for a long period of time. In the worst case, it could spell the end for a business altogether.
While hackers are considered the greatest risk to businesses, there are instances where breaches come from within the company, such as members of staff gaining unauthorised access to sensitive information. The company itself could also be held accountable for the misuse of client or employee data.
Types of data breach
There are two main types of data breach that could cause your business data loss and disruption:
- Malware – Malicious software spread by PC users, typically through a fake (yet convincing) email address. It could take the form of a link which, when clicked on, leads to a ‘payload’ of viral code attacking your system and spreading across networks. Malware spread via email is known as ‘phishing.’
- Ransomware – A specific form of malware that gains access to information stored on a PC or computer network system server. The data is encrypted and made unusable, with cybercriminals demanding an untraceable online currency (Bitcoin) to have the data reinstated via an email notice. The ransom can be thousands of pounds and even if you pay it, there’s a chance you may not get your data back.
If you’re aware of the potential risks to your IT systems, you can take proactive steps to mitigate these risks and bolster the security of your technology. For more information, read our four step guide to staying safe from cyber attacks.
Do you need cyber security insurance?
In today’s digital world, technology is embedded into the practices of mostly all businesses – not just those in the IT industry, as once was the case. So, if you use technology to conduct any business process, then you’re likely to need privacy loss liability insurance.
Cyber liability cover: how it protects you
A cyber liability insurance policy can protect both IT hardware and software and cover may include:
- Data breach insurance – This could recoup the costs of a paid ransom (cyber extortion) or cover costs associated with investigation, remediation, data subject notification and legal action following a breach.
- Extortion liability – Usually, this policy pays legal fees linked to dealing with the extortion.
- Media liability – This type of cover safeguards against third-party damage due to incidents such as infringements of intellectual property rights or specific website defacements.
- Cyber business interruption – If income is lost due to a breach, it can be compensated through this type of cover.
Data breach management cover comes in all shapes and sizes. Policies vary between insurers and the right one for you will depend on a wealth of factors, including the size and nature of your business. Some policies overlap, so you should speak with a trusted advisor who will ensure you’re paying for the insurance that’s most appropriate for you.
Stride: experts in data breach management cover
Cyber liability cover can appear a bit of a minefield, so why not let the experts at Stride take care of things for you?
We’re an independent broker that underwrites insurance on behalf of the UK’s main providers, like AXA, Allianz and Zurich. We’ll take the time to understand the nature of your business, before recommending suitable products.
After 40+ years in the market, we’re best placed to protect your business with robust cover, and if you choose Stride you’ll benefit from our exclusive rates. Speak to our in-house advisors today by calling 023 9224 8790, or request a quote online.