What is cyber liability insurance in the UK?
Most businesses now use computer-based systems for essential business processes such as customer data storage, email and payroll. Automated systems are quick, efficient and require less manpower than traditional manual techniques.
The bad news is that data breaches in online systems are now as much of a certainty as death and taxes. The good news is that cyber liability insurance in the UK provides you with a safety net which enables you to manage the risks related to a data breach and reduce the significant cost that can result from them.
A cyber liability insurance policy provides comprehensive cover if your business is targeted by an online attack by a cyber criminal or hacker.
What are the risks?
Data breaches and hacking are big news – they can go so far as to bankrupt a business. A cyber liability insurance policy can cover:
- Employees stealing hardware or data
- Employees sending incorrect data, losing hardware or falling victim to phishing attacks
- Data breaches as a result of outside providers with inadequate security
- Backdoor attacks via employers social networking accounts
- Employees accessing company data through their own portable devices
Who is at risk?
Few businesses can function nowadays without using computers to some degree, whether it’s in an office at every desk or using mobile devices and working with websites, data servers or basic online software.
Large businesses are often at risk as they may find their employees’ computer usage difficult to monitor due to the sheer number staff members. Large businesses are a bigger target to cyber criminals and hackers due to the huge amount of data they have on their servers.
Small to medium businesses are open to attack and vulnerable to damage as they might not be able to afford security systems. In addition, they might not be able to pay for expert advice after a security failure. As a result loss of income, no possibility to cover legal expenses and reputational damage would be a disaster.