Cyber Attacks are on the Increase will you be a Victim?
Today virtually all businesses collect and store personal information about customers, employees and others. Data breaches are not just a big business problem, SME’s with less data resources are particularly vulnerable.
Businesses need to ensure their cyber risks are managed. Not only to minimise any trading interruption but also to comply with regulation.
In May 2018 the General Data Protection Regulation (GDPR) will come into force. Under this regulation the definition of personal data is broadened, bringing more data into the regulated arena and it introduces stricter data breach notification requirements.
UK SME’s are unlikely to escape the grasp of the GDPR despite the Brexit vote. Under the regulation substantial penalties and fines are also being introduced.
Reputational damage following a security can have serious consequences for any business.The average cost to an SME of a security breach is estimated at over £75,000. However, help is at hand.
When it comes to cyber risk, insurance is more important than ever with attacks and security breaches increasing in frequency and sophistication. Cyber and data risk insurance is designed to support and protect your business if it experiences a data breach or is the subject of an attack by a malicious hacker that affects its computer systems.
Cyber insurance can deliver protection for businesses in many ways including:-
- Third Party and Employee Privacy Liability for damages and claims expenses as a result of a privacy breach.
- Notification expenses to notify victims of privacy breaches.
- Forensic costs to contain a breach and carry out the necessary forensic audits following a breach.
- Public relations expenses to help limit the reputation or impact following a security breach.
- Payment Card Industry (PCI) fines.
- Multi-media Liability, Intellectual Property Infringement and Libel & Slander due to email or website content.
- Data/Electronic Information Loss – the cost to restore data that has been lost or corrupted.
- Indemnification for loss of revenue following unplanned system outage and increased cost of working.
- Cyber Extortion Coverage – covers both the cost of investigation and the extortion demand amount related to a threat to commit a computer attack.
Consider the risks:-
- Rogue employees leaving and misusing data to which they had access.
- Hacking of customer or staff data.
- A stolen laptop.
This blog was provided by David Hosken the Director of Jackson’s.