The cost of Cyber Crime has been estimated to be worth up to £400 million and the UK Government calculated that 76% of small to medium sized enterprises (SMEs) suffered a cyber attack in 2012. Yet many companies are without the correct insurance cover and are worryingly exposed.
Any company that uses technology to trade, has a company website or holds customers’ and employees’ personal information will need to consider purchasing Cyber Risks cover as their existing business insurance policy may not be sufficient.
- A cyber risks insurance policy would be there to cover the loss of income to your company following a cyber attack, for example if your website was hacked and this stopped you from being able to trade.
- The policy could deliver insurance for the costs incurred to reinstate data after it has been lost following a cyber attack.
- Perhaps the biggest area is to cover the liability the business may have to others if personal data is lost or stolen. Imagine if your customer’s or even your employee’s confidential data was taken from a PC and your company was sued, the reputational harm may be massive and the costs catastrophic.
Many businesses are now issuing their staff with portable electronic devices, and smart phones which are susceptible to data breaches and viruses. Perhaps the physical device may be insured if it is stolen but the information on it and the legal costs to the company if it fell into the wrong hands may not be.
The insurance market is reacting to this emerging threat but a traditional business insurance policy will not cover all of these costs, leaving companies susceptible to big losses without a specific Cyber Risks policy.
At Sharrocks we are trained and equipped to assist you and offer you the best advice and policy to suit your needs. The costs of the insurance cover are reducing and can now be purchased for as little as £140 for the year dependent on your circumstances. We have prepared a quick guide and if you would like more information contact us today.