Has your business been affected by hackers or do you know of a business that has? Did the cyber-attack result in a large amount of client data and confidential information being exposed or vulnerable? If you answered yes, were you aware of and covered by Cyber Liability insurance?
Cyber Liability will help cover any losses from unforeseen circumstances involving loss of confidential information such as client data, IT systems and networks. This form of insurance is incredibly important for businesses that solely rely on technology, the internet and data security. There are various ways in which cyber threats can develop. These include theft or loss of data, cyber-attacks, unauthorised system access and more.
Are you asking yourself whether your business can benefit from Cyber Liability insurance? The answer should always be yes. If your organisation revolves around the use of information technology infrastructure, then this type of insurance should be at the top of your list. It is there to protect your business from a loss of database information, as well as other factors that might arise such as income loss, reputation damage and to help cover the costs for new resources and IT equipment that are required to replace the existing ones.
According to a UK Government survey, 2014 witnessed a vast number of businesses who suffered from a cyber breach. It was estimated that the cyber breach affected 81% of large corporations and 60% of small organisations. An average cost of a cyber-security breach is estimated around £600k to £1.15m for large corporations, and £65k to £115k for smaller businesses. (Information found on Markel International).
One of the most recent cyber-attacks affected one of the UK’s largest phone providers, Talk Talk back in October 2015, in which almost 157,000 customers’ private information was hacked into including their bank details. Fortunately, the majority of the codes obtained could not be used for payments; nevertheless, this small proportion of customers had their private information exposed and their confidence in Talk Talk undermined. Therefore, with what happened to Talk Talk, as well as the large number of other high profile companies who have hit the headlines for security breaches throughout 2015, you can understand the importance of having Cyber Liability insurance in place.
If you’re a business who has an online presence or handles or stores client data on your network, then you should at the very least seriously consider taking out Cyber Liability insurance. Given the costs involved in recovering from a cyber-attack or hack then Cyber Liability insurance is cost-effective way of giving yourself peace of mind that both your business and your clients are protected.
For more information about Cyber Liability, contact Watson Laurie’s corporate insurance brokerstoday.