Moreland: its insurance Jim - but not as we know it
The potential risks of cyber-liability
Online cybercrime is not just the stuff of sci-fi movies and urban myth. It is very real and it can pose a huge threat to your business. What’s more, contrary to what many people think, cybercrime is just as likely to affect small firms as large ones.
Indeed, a survey by the Federation of Small Businesses (FSB) found that over a 12-month period, 41 per cent of its members had been a victim of cybercrime, with the impact costing those businesses an average of around £4,000 each.
Another report, this time by accountancy firm PwC, found that almost 70 per cent of UK firms experienced an incident in 2014, compared to 59 per cent globally, with oil and gas firms, utility companies, financial services and manufacturers among the most vulnerable to attack. Almost 10 per cent of UK businesses say they do not know how many security breaches they have had in the last 12 months. A majority of firms surveyed said they planned to increase spending on cyber security.
Holding customer data is a major responsibility. Your customers trust you to keep their personal information safe and your ability to compete is driven by securing your core business data. If you lose or expose that data to others – you’ll be looking at liability for that exposure or loss. This can lead to lost revenue, a damaged reputation, and legal and regulatory costs, not to mention the associated business disruption, that’s where cyber-liability insurance comes in.
In recognition of the dangers of cyber-attacks on small businesses, the Government has set up a Cyber Streetwise campaign as part of its National Cyber Security Programme in order to provide information and guidance for small firms.
BFA Brand Partners Moreland Insurance have identified an Insurance ‘safety net’ via Cyber Liability and Data Insurance. They can offer comprehensive protection for your computer systems and data (electronic or non-electronic).
- Compensation for loss of income, including where caused by damage to your reputation, if a hacker targets your systems and prevents your business from earning revenue.
- Payment of the costs associated with regulatory investigations or claims for damages made against you for failing to keep customers’ personal data secure. We will also pay civil penalties levied by regulators (where allowed).
- Reimbursement for the costs of repair, restoration or replacement if a hacker causes damage to your websites, programs or electronic data.
- Liability protection if you mistakenly infringe someone’s copyright by using a picture online for example, or inadvertently libel a third party in an email or other electronic communication.
Moreland Director Maurice Logie comments: “The danger of some kind of loss or damage to a business via the internet is growing at an alarming rate. The cost of cyber liability and data cover is relatively inexpensive when compared to the damage that can be done. Moreland is happy to provide a quote on a ‘no cost or obligation’ basis.