What happens when criminals crack your code?
Telecoms giant Talk Talk estimate that a cyber-attack it suffered last November has cost the company £42 million in clear up costs*, that is a huge sum even for a company of its size and will have a lasting effect on its financial position. Cyber-crime is not just a big company problem.
With 74% of small businesses in the UK having experienced a security breach in 2014-2015** and cyber-crime on the increase, cyber security is a key consideration for businesses of all sizes.
Why do businesses need cyber insurance?
A 2014 government survey estimated that the average cost of a cyber-security breach for SME’s is between £65k-£115k***, add to this the reputational damage and some companies find it hard to recover from such an incident.
What can a cyber insurance policy cover?
The world of technology changes daily and it can be hard for the layman to understand what exactly is covered and what’s not. The three main areas of cyber insurance are;
- Cyber Crime Cover – this can cover phishing, email cloaking, fraud carried out over the internet.
- Data Breach – in the event of lost or stolen data, this can cover initial forensic costs, reinstatement of data, the cost of customer notification, PR needed to minimise reputation damage.
Business Interruption – policies can extend to include Business Interruption cover in respect of trading time lost due to the incident.