If you keep in touch with the news, you will have seen that the risks to business resulting from cyber-crime are hitting the headlines more and more.  As a result cyber insurance is getting a higher profile.

Some large household names have been involved but smaller companies are equally at risk. In fact, because small businesses don’t have the resources of larger PLCs, it could be said they are at greater risk.

This is backed up by a recent government report which found that 60% of small companies suffered a cyber breach in 2014.   Even the FBI has said that there are two types of company – those that have been hacked and those that will be!

According to the Information Commissioner’s Office, the health sector has the highest number of data breach incidents.

So how can it happen?

  • A “phishing” email opened by an unsuspecting member of staff.
  • Hackers have access to software that can randomly and automatically attack the IT systems of a business. They don’t necessarily target a particular big name firm.
  • Loss/theft unencrypted equipment (laptops, memory sticks).
  • Break-Ins.
  • Transmission of a virus from your systems.
  • Accusations against you for libel or slander from a third party (e.g. by a member of your staff using social media).
  • Simple human error!

What data can be at risk?

  • Names and addresses.
  • Dates of birth.
  • Bank and credit card details.
  • Health records.
  • Don’t forget this applies to client and employee records.

What are your risks?

  • Costs of dealing with the data breach – investigation, forensic analysis, notification to data subjects and the regulator.
  • Business interruption – following lost trade, inability to operate.
  • Extortion or Denial of Service attacks – some hackers encrypt data and only release it after a payment is made.
  • Hacker damage – software, website, data.
  • Hacker damage – hardware
  • Claims from third parties for damage to their systems, loss of money, business interruption.
  • Breach of copyright.
  • Penalties from regulator.
  • Reputation!

To sum it all up, there are many types of cyber risk, but they all tend to result in the loss of one of more things – income, trust, reputation or data.

There are various cyber insurance solutions to these risks but a lot depends on what data you store and how you handle it so if you would like to discuss your own particular situation, please get in touch.

Either give us a call or drop us an email – enquiries@apinsurance.co.uk