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Our Ultimate Guide to

Cyber Insurance

Engaging customers, transforming products & services and optimising processes – digitalisation is transforming the way that small businesses operate. However, with the benefits comes a new set of risks as hackers look to take advantage of weaknesses in your cybersecurity.

Small businesses in particular can be seen as easy targets for cybercriminals as they may not be able to afford the same amount of security that bigger businesses have in place. In fact, a 2019 Federation of Small Businesses report found that small businesses were subject to almost 10,000 cyber-attacks each day, with the average cost to the business amounting to £1,300.

In light of this, and to mark Cyber Security Awareness Month, we’re exploring the importance of cybersecurity for small businesses. Our Small Business Guide to Cyber Insurance explains how you can protect your business from the effects of a cyberattack.

What is a Cyberattack?

A cyberattack is a malicious attack on your digital infrastructure, whereby cybercriminals look to expose, alter, disable, destroy, steal or gain unauthorised access to your computer systems. Businesses of any size are vulnerable to a cyberattack.

However, small to medium-sized businesses are particularly vulnerable as they may not have the same level of security as larger businesses. Cyber Insurance is a way to protect your small business from the impacts of a cyberattack.

What is Cyber Insurance?

Cyber Insurance is a product designed to protect businesses from the effects of cyberattacks such as data breaches or cyber hacks. Whilst it cannot prevent an attack, Cyber Insurance covers the losses associated with a cyberattack and supports business owners in managing and recovering from the incident.

Do I need Cyber Insurance?

Companies that identify as offline may assume they do not need cyber protection. However, all businesses that use IT are at risk of an attack. Staff emails, company websites and online banking functions can all be targeted.

If your business uses, sends or stores electronic data then you should seriously consider Cyber Insurance as the data is vulnerable to cyber-attacks and data breaches. Unfortunately, small businesses tend not to have the same capabilities to be able to deal with the loss of hardware and the potential data costs.

Why is Cyber Insurance Important?

Cybercrime has always been big business for criminals. However, the rapid adoption of remote access for homeworking and financial re-direct fraud, which targets large and rapid change in organisations’ supply chains, presents new opportunities for criminals.

Cyber insurance can help protect your business from the costs, claims and fines associated with cybercrime.

How Much Does Cyber Insurance Cost?

As with all insurances, the cost is influenced by a number of factors. The industry which you function in will impact cost as some sectors are deemed to be more prone to attacks. Your annual revenue, the type of data you hold and level of network security will also impact your premiums.

What does Cyber Insurance cover?

Most Cyber Insurance policies will cover first-party and third-party financial and reputational costs. Key considerations for businesses when choosing cyber insurance are whether the policy provides:

  • Cover for the costs of dealing with data breaches
  • Cover for the costs of dealing with cyber liability claims
  • Cover for business losses from a cyber-event
  • Cover that helps businesses deal with the impact of cyber crime
  • Cover for hardware and data corruption
  • Access to expert advice and support

At constructaquote.com we could cover you for all of these potential problems in one policy.

What are Common Cybercrimes?

There are many forms of cybercrime but some common types to be aware of are:

Phishing:
Phishing is a cybercrime where criminals contact people, typically via email, pretending to be a legitimate institution to trick them into providing sensitive data such as personally identifiable information, banking and credit card details, and passwords.

Malware:
Malware is a type of malicious software that installs into your computer. For example, malware can get into your PC if you click on links from suspicious emails sent from unknown email addresses. Once installed, hackers can use it to steal passwords, delete files and render computers inoperable.

Ransomware:
Ransomware is a type of malicious software that infects your computer and displays messages demanding a fee to be paid in order for your system to work again. Ransomware can be installed through deceptive links in an email message, instant message or website.

Hacking:
Cyber hacking is the unauthorised access to, or control over, a computer network with the general aim of accessing important data. This is usually done through when the hacker cracks your password which gives them access to your systems.

Safeguard your Business against Cyber Attacks

There are things you can do to improve your cyber security and help safeguard your business against a cyberattack.

These include:

Cybersecurity training:
Do you have a cyber-security strategy in place to highlight the risks and document the process in place to manage them? Record and communicate your cyber security guidelines to employees through effective training. Ensure that staff know basic cyber security principles such as regularly changing passwords and not opening suspicious files or links.

Antivirus Software:
Antivirus and antispyware software is a must have for any small business owner. It’s designed to detect and block malicious software from attacking your systems. A firewall is another security device that filters traffic and blocks outsiders from gaining unauthorized access your computer.

Cyber Insurance:
Although Cyber Insurance cannot prevent an attack, it plays a fundamental part in helping your company recover after a data breach. Small businesses in particular are likely to struggle with the associated costs of an attack which can include business disruption, revenue loss, equipment damages and legal fees.

At constructaquote.com we have 30 years’ experience in helping customers get their insurance sorted. For a great service and a competitive quote for Cyber Insurance for your small business, speak to our team today on 08081 68 68 68 or get a quote online today.

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