EXPERT INSIGHT: What is Cyber cover, and do I need it?
Cyber is the fastest growing crime and business owners carry even more risk to an attack on their systems and data.
In seeking expert insight for our ex-military business owners, we asked XFE corporate partner The Military Mutual for their advice on systems that might prevent an attack, and how to plan ahead to avoid downtime if the worst happens.
In this article, Commercial Account Manager Rupert Hills shares his tips for small business owners to protect themselves.
Cyber: What does it mean?
What do we mean when we talk about cyber and why do clients need to protect themselves? Well in general sense it is crime! Technology has revolutionised the world whether it be finance, data management or just simple communications. Advancement in tech has made tasks that would take months be able to be completed in seconds. The problem with this is that it is not only business that welcomes this but also the criminal underworld. It is more lucrative and safer to act digitally than physically. Cyber Insurance is there to act as an integral part of any risk management strategy, it is there to help recover from a cyber event.
What can it cover?
Regulatory liability and fines – Cover for the costs associated with responding to a regulatory investigation (such as GDPR) arising out of a privacy event. This may include legal advice, notification costs, defence of regulatory action etc. The accompanying fines will be covered to the extent they are insurable by law.
Business interruption – The inability of a business to operate as a result of a cyber incident can be ruinous. The business interruption cover under a cyber policy helps to alleviate this effect by covering the loss of income and extra expense as a result of a security failure.
Cyber extortion – Cyber extortion has grown to be one of the most prolific type of attacks on businesses. A cyber insurance policy will cover the costs and expenses associated with an extortion event (e.g. Ransomware).
Date restoration – Many businesses are driven by the data that they hold. A cyber policy can cover the recreation or restoration of electronic data following a cyber incident.
Media and content liability – Cover for claims from a third-party alleging infringement, libel, slander, copyright etc. resulting from online content disseminated by a company.
Security and privacy liability – A policy will provide cover for any litigation arising from a cyber incident whereby confidential information has been disclosed or someone has gained unauthorised access resulting in a breach.
Incident response – The way in which an organisation responds to a cyber event is critical in helping to ease and mitigate the potential implications. A cyber policy can include a variety of post incident services aimed at helping to steer a business through the crisis seeking to minimise damage to the balance sheet, consumers, and reputation.
Do I need it?
Whether you hold sensitive information (names, address or banking information) on your employees and clients or rely on computer systems to operate your business you are at risk of falling victim to a cyber incident. Cyber is the fastest growing crime in the world, can you continue operating without access to your technology? Data is one of the hottest commodities out there and having access to a company’s client list can earn a criminal, hundreds, if not thousands and potentially much more. Remember, cyber insurance is there to get you back on your feet as quickly as possible!
What can I do to help?
There are various things that can be done to help protect you and can even give you a discount:
You can apply for two certificates which teach you best practice for cyber care, Cyber Essentials and ISO 27001 for IT security.
You can implement policies on data protection and retention, cyber security and business continuity.
You can appoint a single person of responsibility for IT security whether that be a Director/Board member a manager or even a member of staff.
Make sure that the operating system is updated at least every 30 days.
As a company enforcing strong passwords that also need to be changed regularly will help protect you.
You can provide IT security training to your staff to help teach best practice.
As a business owner there will always be the danger of someone trying to access your systems and data. What you can do is implement systems and procedure to help prevent an attack and put in place a plan to help get you back up and running as quickly possible!
If you would like to know more, please call or email The Military Mutual on 0203 903 5357 or firstname.lastname@example.org
The Military Mutual is a Mutual set up to provide fair, financial services such as Home, Landlord, Military Kit and Business cover to those who are serving, veterans, families and supporters of our armed forces.