What is Cyber Liability Insurance?Cyber security risk is a comparatively new concept for businesses to get their heads around, and something that can be quite easily overlooked by those who do not fully understand the huge potential of this threat. However, all forms of data that are held without suitable protection, and any undefended means of access to shared drives and electronically stored information are liable to be illegally accessed or manipulated by cyber criminals - so it is vital to be able to defend your company against this eventuality. One of the best ways in which this can be achieved is by investing in cyber liability insurance. So what do you need to know about this particular form of legal cover? The team at Rigby Financial have gathered together answers to some of the most commonly asked questions in order to give you a good idea about what cyber liability insurance is, and how it can protect you and your company from the costs inherent in cyber threat.
In recent years there have been many high-profile cases involving a cyber hack with firms such as Uber, Pizza Hut, Yahoo and Deloitte all falling victim to a breach of online security.
1. Why is Cyber Liability Insurance important?
Your employees can take numerous steps to reduce the risk of an online security breach but that doesn’t mean that you don’t need Cyber Security Insurance.
The actions your staff can take to prevent an attack happening include making sure your staff are regularly trained and up to speed when it comes to identifying the latest online threats and using secure passwords and logins on all hard drives. Worryingly, human error is behind many cases of a cybersecurity breach, where in effect the door has been left open for online intruders by accident. This is why it is paramount to make sure your staff are familiar with suspect emails and risky software, for example.
You can also install doors which requires a pass or card to gain entry which will lower the chances of the theft of devices which could then lead to hacking.
While all of these things can lower the potential of a hack, you still must consider Cyber Liability Insurance to be important to your business because in the case of any breach you will be able to recover any financial repercussions that you suffer, any loss of data or sensitive information.
2. What is Cyber Liability Insurance?
Cyber-crime is amongst the quickest growing category of organised crime in the world. According to last year’s Cyber Security Breaches Survey, 37% of all UK businesses suffered at least one cyber security breach or attack in 2017.
Cyber Liability Insurance is used to guard your business against these internet threats such as a cyber-crime hack. Cyber Security Insurance can also help you to recover any costs you suffer should any of these cases happen. A Cyber Liability policy from Rigby Financial can be tailored to suit the specific needs and requirements of your business.
3. What does Cyber Insurance cover?
Any successful break into your firm’s online security could see cyber criminals steal and use any of the following:
• Your customer database
• Confidential customer details like payment information and bank details
• Valuable employment data such as NI numbers
• Intellectual Property
• Digital and/or Cloud stored data
• Social Media accounts passwords and logins
4. How can companies better manage cyber risk?Firstly, it’s important to undertake a proper risk assessment regarding any information stored online or within your company’s servers, just as you would with any physical aspect of your organisation. What might be the worst case scenario should your systems be hacked and the data you have stored accessed? Once you have worked this out, you should begin to look into the very best cyber security and antivirus software that is currently available. Believe us - the amount you’ll spend on this will pale in comparison to the money you’ll need to pay out in the form of compensation should the security of your data be compromised and the private information of your business and its clients be leaked. It will also save you money on your cyber insurance premiums, as brokers will want to see that you have worked hard to protect yourself.
5. What's covered by a cyber liability policy?
A Cyber Liability Insurance policy may seem an alien concept to business owners who have run their organisations for years without a hitch, but, unfortunately, with new technology comes new risk, and with new risk comes new forms of insurance to help you to manage the potential fallout. Cyber liability insurance can cover you against a variety of threats, including:
Costs accrued through the repair of any damage that your website or systems may have incurred at the hands of viruses, and rebuilding anything that has been destroyed by them
- Costs incurred in the pursuit of the safe return of any lost of stolen data
- Any cost incurred as a result of ID theft - the deceitful use of your online identity
- Any costs involved in restoration after hacking
- Any compensation you may have to pay should you accidentally find yourself invading IP (intellectual property)
6. What are some of the main cyber risks to businesses?
There are a number of major online or electronic risks that may result in your company’s internet or electronic security being breached. These include:
- Human error. Loss, theft or the accidental allowance of unauthorised access to a device used for private professional purposes that could expose private or protected information
- Online fraudsters purposefully attacking or accessing your online presence or any data you may have stored, either to smear your company’s image or to steal information
- A phenomenon that arose as technology and the capabilities of the internet and email progressed. Professional criminals may target you or you employees with sophisticated emails or other methods of contact designed to draw personal, professional or financial information from you for their own use
- This is where an individual or illegal enterprise takes data or an element of your electronic arsenal “hostage”, and threatens that they will only restore things to the way they were once you pay a certain amount of money to them
7. What to look for as a cyber insurance buyer
It’s always a good idea to search for an insurance package that will be able to cover your company’s specific needs without having to spend too much on unnecessary extras. You should have an in depth discussion about the particular concerns you have with any insurer you approach (bring the aforementioned risk assessment along for reference) and ensure that you discuss any unique issues with them, as this will help them to understand which parts of a policy you will definitely require and which may be superfluous to your needs.
You need to make sure that your company’s entire network is covered, not just individual machines or devices. You should also consider whether third party insurance is required. This not only covers you, your business and its employees, but also any customers whose data you may have stored on your servers. We’ll expand on this below.
8. How much does cyber liability insurance cost?
The answer to this question primarily depends on the type of policy you opt for and the extent and variety of its cover. A core policy will carry a baseline price tag, and any add ons may cost extra. Rigby Financial can tailor a policy to meet your precise needs. To find out how much your cover will cost, all you need to do is request a quote via our online form here.
9. What is third party cyber coverage?
Depending on the nature of your company and its clients, third party cyber insurance is likely to be vital. Over the last few years, there have been numerous high profile cases of data leaks within major businesses, including banks and high end websites, where customer information has been hacked into for the purposes of identity theft, fraud, or merely to reveal the impressive capabilities of the hacker in question. Third party coverage helps to keep the data of those who access your firm’s website or utilise its services safe from these risks, and to compensate them if they fall foul of practices that are becoming ever more sophisticated each day.
10. How can a cyber data breach happen?
There are many ways in which a data breach can occur. Hackers are getting smarter all the time, and, with software such as penetration testing tools that were originally designed to locate weaknesses in a business’s system now available for anyone in the know to download, the question is usually “when will a data breach occur” rather than “will one happen at all?”.
The above represents just one way in which a cyber criminal may access your company’s vital information. If your employees are able to access data or accounts from locations other than your business’s main base, there is always the risk of them using unsecured Wifi connections or misplacing their devices. This constitutes another way in which your company’s security may be compromised. One factor that may be unpleasant to consider but would still represent a potential risk is the fact that many cyber criminals strike from within the company itself. There is no way of completely ensuring that one of your own employees will not leak your firm’s information, but there are ways to protect yourself and your organisation should this take place.
11. What if we store client data in the cloud?
There are a great many advantages to storing data in the cloud. Important information can be shared with all employees who need to see and approve it without the need for email attachments, and changes can be made to documents simultaneously across devices. However, as has been exemplified by previous high profile data breaches, the cloud is rarely the safest place to store information. Client data, in particular, should be held in a secure server that is only accessible if an individual is able to satisfy data protection security requirements. If you contact a call centre to discuss your mobile phone contract, for example, you’ll normally need to answer a number of questions regarding your personal information - your date of birth, postcode, mother’s maiden name and chosen password, for example - to allow you to access this private data. This approach is much more secure than a reliance on the cloud. Your insurance premiums will be much more affordable if your clients’ data can be proved to be secure in this way too.
So - Where Can You Go for Reliable Cyber Liability Insurance?
It’s always important to conduct an in-depth search for the ideal cover when you are looking for cyber liability insurance to protect your company and its employees. As we mentioned earlier, you should always discuss every element of your business’s requirements with potential insurers to confirm that your cover will protect every aspect of your online presence and activity.
If you need to know more about cyber liability insurance, you can call Rigby Financial on 01744 886077 or send them a message via their online contact form, which you can find here.
Our offices are open from 9am until 5.15pm from Monday to Friday, so don’t hesitate to contact us and find out what we can do for you and your company.