Did you know that last year the UK was hit by more than 500 ‘significant’ cyber attacks? And experts at the National Cyber Security Centre predict a major attack will happen soon. Could it happen to your business? You can use this guide to work out your risk of attack, find out what you can do to stop it, and discover how cyber attack insurance can help protect you financially.
How can a cyber attack damage my business?
Cyber attacks are a sophisticated type of organised crime. Your businesses can be targeted whatever its size or type. The government’s 2017 report on cyber security breaches revealed that just under half (46%) of all UK businesses identified at least one breach or attack in the last 12 months. This increases to two-thirds among medium-sized firms (66%) and large-sized firms (68%).
Cyber attacks can take many forms:
- Your data security can be breached, and the personal or financial information of your customers can be stolen. This could leave your business liable to pay compensation
- A cyber attack could disable your network, meaning hours, days, or even longer when your business cannot function. This can have serious implications on cash flow
- An attacker could gain access to your network to make changes to information or send messages. This also gives the attacker access to your intellectual property, which could be very damaging to your business
If your suppliers fall foul of a cyber attack it can also have a major impact on your business.
High profile, high-cost attacks
The WannaCry cyber attack hit the headlines in May 2017. It infected thousands of organisations across the world, including the National Health Service in the UK. It shut down systems and caused an estimated $4billion in clean up costs. More recently, Petya and NotPetya ransomware have had the experts estimating costs could spiral to 10 times that of WannaCry. And it’s not just these high profile cases causing havoc. There are thousands of other cyber attacks on business and individuals every day.
How can I fend off data breaches and attacks?
So what can you do to prevent a cyber attack causing damage? Your businesses should carry out a cyber security risk assessment whatever its size or type. This will identify potential risks and enable effective planning. You’ll also need to review and update this risk assessment regularly as new changes to your business and new threats could impact.
Do I have to do a cyber security risk assessment?
The EU’s General Data Protection Regulation will come into force in May this year. This legislation requires all organisations to carry out data protection impact assessments for the riskiest uses of personal data. It means that companies will need to ‘continuously’ identify risks that could put personal data at risk. The government has already stated that this regulation will continue to be enforced after Brexit.
What is cyber attack insurance?
Even with the best controls in place, firms can still find themselves at the mercy of an attack. Cyber attack insurance, also known as cyber liability insurance, covers you financially if your business is struck. It gives you peace of mind that you will be able to cover the costs of suffering a security breach, including:
- The price of recovering lost data
- The costs of compensating customers who have suffered loss as a result of a data breach
- Any other costs of managing a crisis situation caused by cyber crime
How much does insurance cost?
The cost of cyber attack insurance will vary according to the size and type of your business and the level of protection that is required. For many firms, the most important factor is not the cost but what’s included and what is not. If you don’t check the small print, you could find your business exposed to significant risk. Use an experienced, specialist insurance broker, like Park Insurance, who can guide you towards insurance you can count on if you are the victim of an attack.
Do I need cyber attack insurance?
Cyber security is not just an issue for businesses with online services. Businesses that hold electronic personal data on customers are more likely than average to have had cyber security breaches (51% compared to 46%). However, breaches are still high among firms that consider cyber security a lower priority (35%). And 41% of firms that do not consider their online services to be a central part of the business have also been hit.
Getting the best price on cyber attack insurance
We know that every firm is different. You should look for insurance that can be tailored to your needs. That way you can be sure that you’re fully covered but you’re not paying for anything you don’t need.
You can call our expert team at Park Insurance for free advice on cyber liability insurance. Firstly, we understand the risks you face and know exactly what will give you the peace of mind you need. As a family-run independent broker, we can shop around to find you the best price. And if anything does go wrong, you can rest assured that our helpful team will handle your claim for you, giving you one less thing to think about. Call us on 0117 9556835 or get in touch.