Insurance your business against cyber crime

As technology continues to advance, so do the risks associated with it. See how the insurance industry is evolving to counter the threat posted by cyber criminals…

Insurance your business against cyber crime

As business owners we all know about public liability, shareholder protection and the vast range of other policies designed to support and protect our companies. However, as our technology evolves, so do the criminals looking to take advantage of it. Cyber criminals are the chameleons of the criminal underworld, able to hide in plain sight thanks to advances in modern technology. But how is the insurance industry guarding against these online opportunists? As technology continues to advance, so do the risks associated with it. See how the insurance industry is evolving to counter the threat posted by cyber criminals…

Complacency has no place in your business when it comes to the risks associated with cyber crime, and a carefully considered strategy is the best way to protect yourself. Every industry has to be able to move with the times and the technology. The insurance industry is no different.

Cyber Crime & Cyber Liability

A recent study published by the Ponemon Institute, found that following a survey of 36 large UK organisations spanning multiple sector (the majority of which were global companies) had fallen victim to 1.3 successful attacks per company, per week.

Back in 2013, the Federation of Small Businesses (FSB) stated that hacking, data security breaches, and computer viruses were a “barrier to growth” with an ability to impact not only a company’s reputation, but their continued viability. Their report found that cyber crime is costing its 200,000 members a combined total of £785m a year – or £3,750 for every small business.

The ultimate responsibility for the protection of privacy and personal data falls on the businesses with possession of that information. That means it is your company’s obligation to protect the data and the financial information of its customers. With the majority of businesses operating with a website, requiring their staff to have email accounts and the Internet, as well as dealing with their customers’ credit card details and personal information, you are always susceptible to a cyber attack. Whilst your business can, and should, invest in staff training, IT infrastructure, and firewalls to minimise your risk, what else can you do to guard against cyber criminals looking to compromise your business?

The answer is cyber liability insurance. You can potentially mitigate this exposure with cyber liability insurance; this covers any liability arising out of unauthorised use of, or unauthorised access to, electronic data or software within your network or business. These policies also protect against claims of spreading a virus or malicious code, computer theft, extortion, or any unintentional act, mistake, error, or omission made by your employees while performing their job.

With most business insurance policies covering physical assets, but with the value of data when it falls outside of that scope, dedicated cyber liability insurance is vital.

Finding the right solution for you

When determining what will be the best level of cover for your business, you’ll need to think about how heavily you rely on IT and email systems to function. It’s about getting the right balance between an appropriate level of comprehensive cover without it being too financially draining on your resources.

Whatever your sector, we can put you in touch with the right people who have the skills, knowledge, and expertise to get you the right level of cyber liability cover to protect your business, and your customers.

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McGarvey Jones

The Partner Practice represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's wealth management products and services, more details of which are set out on the Group's website www.sjp.co.uk/about-st-james-place/our-business/our-products-and-services.

The 'St. James's Place Partnership' and the titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.

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