According to a study by IBM, 95% of cybersecurity breaches are the result of human error. And yet, according to the Association of British Insurers, just 11% of businesses are thought to have a specific cyber insurance policy in place. This means that millions of small businesses could be at risk.
In this guest blog, our friends over at Jukes Insurance Brokers discuss what cyber insurance is and what it does.
What Is Cyber Insurance?
Cyber insurance is a form of liability cover to protect your business from threats in our digital world.
It’s a common misconception that small businesses are too small to be targeted by cyber criminals and therefore don’t need cyber insurance. Yet a recent study found that in 2019, 63% of SMBs reported experiencing a cyber security breach.
The truth is, every business is at risk of cyber breaches. And you’re particularly vulnerable if your business handles sensitive information such as customer names, addresses, or banking information, or if your business relies on technology operate.
Why Is Cyber Insurance Important?
In the event of a breach or cyber attack, you’ll need to take quick and decisive action to mitigate your losses. This is where your cyber insurance policy can help by deploying a team of experts to act swiftly.
You may have elements of this covered with your IT support, such as data recovery and restoration, but the support goes well beyond this, including consideration of ransom demands, support to notify both authorities and impacted individuals in the event of a data breach, provision of monitoring for impacted individuals, and PR support.
It’s important to remember that cyber insurance is a complementary measure rather than a replacement for good IT security.
Understanding your risks and level of exposure is half the battle, the next is to choose the appropriate cover so you are protected.
What Cover Is Available?
Most insurance policies will cover the first party (the business involved) and third-party (claims made against you) for both financial and reputational costs. Jukes Insurance Brokers tailor cover to your unique risks and advise appropriate cover to fit your unique needs.
Some of the cover available to businesses include:
– Malware & Ransomware
– Business interruption
– Investigation costs
– Compensation and legal costs
Businesses of all sizes are seen as targets by cybercriminals. Smaller companies typically place less importance on their cybersecurity, hackers know this and exploit it.
You hear about the big businesses falling victim to cybercrime although what often goes unreported is the losses experienced by smaller companies.
As your business becomes more and more reliant on technology you become more appealing to cybercriminals.
They will go to any length to benefit out of system vulnerabilities or poorly trained staff.
Ensure your staff are cyber secure!
Jukes Insurance can arrange a policy to help minimise financial losses, alleviate public backlash whilst considering developing threats to ensure your business is protected now and in the future. For more information on cyber insurance & how it can help, get in touch with Jukes Insurance Brokers.