There’s a misguided perception that cyber insurance isn’t worth the paper it’s written on. In fact a recent Government survey revealed half of all business owners don’t even realise cyber risk can be insured.
Of those businesses that do realise cyber risk can be insured, 52% believed they had some form of Cyber Cover in place. Worryingly, less than 10% actually do.
Cyber Cover can protect against common threats, including:
The cost of restoring data, software and programs
- The negligent use of electronic media by employees, such as making libellous comments on social media
- Passing on a virus to customers or suppliers
- Loss of revenue resulting from a denial of service attack
- Damage to business reputation, resulting in legal actions and fines
- Digital forensics, breach notification and legal advice costs
Angus Eaton, MD commercial lines at Aviva, states: “Cyber risks like hacking, a stolen laptop, system failures or a memory stick going missing are unfortunately very much part of the digital world. The impact on business operations can be catastrophic, not just the financial impact of a data breach but also in terms of the damage to reputation. Businesses need an affordable way to protect themselves as well as access to expert advice should they suffer a data loss or breach.”
“For example, a virus that has resulted in the loss of customer data needs a quick response not only to remove the virus and protect the data but also to ensure that staff, suppliers and customers are kept informed of any risk and remedial measures.”
Nick Chambers, Boswell Aftermarket Chief Executive adds “Business owners should be looking to take precautions to limit the damage cyber attacks have on their businesses, such as encrypting data and creating business continuity plans. In addition to the practical precautions there is another way of protecting businesses from a financial loss if an attack was to occur; Cyber Cover. We are certainly speaking to more and more motor factor clients about the cover as awareness of the risk increases.”