According to Get Safe Online, in the past 12 months, UK businesses have experienced a 22% increase in cyber crime. The cost of these attacks is estimated at more than £1bn.
Business of all sizes may handle and store huge amounts of electronic information. If such data is lost, or unavailable for immediate use, the implications can be very serious. Secure handling of data is vital and any loss or inaccessibility can irrevocably damage a business and its reputation.
Large companies can be obvious targets for hackers and cyber criminals because of their high-profile and widespread image but small businesses can be less well protected against cyber criminals, having no specialists available to turn to for help.
A standard Property or Business Interruption insurance will not offer cover for the consequences of cyber crime, as its main function is to cover loss or damage to property as a result of insured perils, such as fire, theft, malicious damage and terrorism (where such covers are requested and arranged).
Cyber risks include service interruption, theft, corruption or loss of data and insurance solutions have developed in recent years, providing a wide range of covers with high limits of indemnity available.
There may be Third Party claims against a business due to system failure or loss of data, as examples, or damage may purely be suffered by a business which has to work around the issues caused by a cyber attack. The first example is commonly known as the “Third Party liability” risk and the latter is the “First Party” risk which refers to loss suffered by a policyholder or “insured”).
H&H Insurance Brokers can assist in providing advice about cyber-related risks, the options in covers available and what form of cover may be considered most suitable for a particular business’s needs. For a ‘no obligation’ chat contact Alan Green, Senior Commercial Executive on either his email or mobile 07850 604677.