- Cyber Insurance
The risk and related costs of a cyber incident to an SME are ever-increasing. Insurance companies and brokers, like us, are working very hard to raise awareness of cyber risks, so businesses can be protected.
SMEs are being lulled into a false sense of security by the lack of media reporting on cyber incidents affecting small and medium businesses. Only the big names, the big fines and the big data breaches make it into the press. The reality is that SMEs are much more likely to suffer a cyber attack or data breach, because their cyber security is more vulnerable!
The costs of recovering from a cyber incident will vary but here we'll explain that it's not just the cost of fixing a computer!
What Is a Cyber Incident?
A cyber incident could be anything from a deliberate cyber attack to an unintentional data breach by an employee. Hover on these examples for more information about them.
Depending on the incident itself, below are some of the costs associated with a cyber incident and data breach.
What Is Cyber Insurance?
Cyber insurance is designed to cover the cyber risks that businesses face.
While cyber insurance can't prevent the incidents described earlier, it can protect a business from the associated costs.
*Not all of these covers are offered by all insurers. Policy terms and covers offered will vary.
Conditions of Cover
An insurer is unlikely to offer cover, or a claim could be unsuccessful, if a business's IT security and data privacy procedures are seriously lacking. It may also be a policy condition to have a disaster recovery plan in place.
At quotation stage, many insurers ask if the business is Cyber Essentials accredited. Cyber Essentials is a government and industry supported scheme to help businesses protect themselves against cyber risks as well as demonstrating to their customers that they take cyber security and the protection of their data seriously. More information can be found at www.cyberessentials.ncsc.gov.uk However, strong cyber security isn't enough to fully protect a business. If a hacker is determined enough or if an employee makes a simple mistake, a cyber incident can occur.
With strong cyber security and the right cyber insurance in place, business owners can feel confident that they have done everything they can to protect their business, staff and customers from the effects of a cyber incident.
Who Needs Cyber Insurance?
All businesses which use IT in some way, are at risk of a cyber attack or data breach. SMEs are often an easier target for hackers than big corporate companies as their security is weaker. Even with strong cyber security, a determined hacker will find a way or an employee error could result in disruption and financial loss.
How much does it cost?
Cyber insurance premiums vary according to these main rating factors:
- Business description
- Number of Employees
- IT Security
- Claims and cyber incident history