You don’t have Cyber Insurance? 5 great reasons to buy this cover!
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Here are our top five reasons we think every business should have a cyber insurance policy.
- Cyber security and incident response services are often included. Cyber insurance doesn’t just cover financial loss when an incident occurs. A good policy offers proactive protection to stop attacks from happening in the first place, and reactive support to respond efficiently and effectively when they do occur. The value these services offer to small businesses in particular (ie those without huge in-house IT teams) might just be the greatest benefit a cyber policy can provide.
- Cybercrime is growing rapidly. Our increasing reliance on technology and the internet is exposing any business that uses a computer to a world of cybercriminals—who work around the clock to identify vulnerabilities and launch attacks. You’ve likely heard of ransomware, but social engineering scams are also on the rise, leading to significant losses for companies of all types. At the forefront of protecting against this new wave of crime, cybercrime provides invaluable cover for a wide range of electronic perils, from wire transfer fraud to ransomware.
- System downtime is missed by standard business interruption insurance. When computer systems are brought down, a traditional business interruption policy is unlikely to respond. Considering how almost all businesses rely on technology to some extent, this can result in significant financial loss the business has to bear alone. Cyber insurance can provide cover for loss of income and extra expenses associated with a cyber event, including legal fees, the cost of remediating the incident, the hiring of expert teams, reputational harm and so on.
- Your data is not covered. Data is one of today’s most important business assets, often worth many times more than the equipment it’s stored upon. Yet business owners are often unaware that a standard property policy would not respond if data is damaged, lost or destroyed. Taking out a cyber policy is a great way to get comprehensive cover for data restoration and even re-creation in the event of a loss.
- Complying with breach notification laws cost time and money. Breach notification laws are now commonplace across many territories, and require businesses that fail to protect personal data to notify affected individuals or risk hefty fines and penalties. Over and above the UK’s GDPR requirements there are regulatory requirements under Australia’s Notifiable Data Breaches Act, Canada’s Digital Privacy Act, Europe’s General Data Protection Regulation, and numerous US state laws making it a legal obligation to notify, and there is also a growing trend towards voluntary notification in order to protect your brand and reputation. Cyber policies can provide cover for the costs associated with providing a breach notice even if it’s not legally required, and can also cover associated regulatory fines and penalties.
Most businesses need cyber insurance cover, even if they don’t know it yet. To get your cyber protection in place, contact Anderson Smith on 01577 3331777 or info@anderson-smith.co.uk.
Credit: CFC Underwriting Ltd.
