Why Do I Need
Cyber
Why Do I Need
Cyber Insurance?
The way in which business is conducted has changed more in the last 10 years than the last 100 years. Today, cyber risk is present in most business operations and the mishandling of a cyber event has become one of the biggest threats that a small to medium business can face.
It is important to remember that you do not have to be a digital business to need cyber insurance, only digitally dependant.
So, what do we mean by a business that is digitally dependant? We mean any business that relies on digital services or data to operate, or any business that has on online presence. For example, most small to medium businesses may not see themselves as a ‘digital business’, but they rely more on technology and data today than they ever have done before. Some of the common ways in which a small to medium business relies on technology are:
• Creation and storage of invoices and receipts
• Taking and making electronic payments (via computer or mobile)
• Use of email
• Use of your own website
• Use of mobile phone networks and WIFI • Storage of employees and customers
personal information (names, addresses, payment details)
• Social media and online marketing • Storage of business-critical data. For
example - stock lists (retail), blueprints (construction), customer appointment details (motor traders), customer contact details (professionals)
• Update and use of computer operating systems
• Online sales and services
If a cyber breach resulted in your business losing access to the above for a lengthy period of time, ask yourself…
• What would you do?
• Who would you call to get the matter resolved, quickly, to ensure you can continue to trade? • How severely would your profit / bottom line be affected?
• How severely would your reputation be affected?
E-Theft
In addition to the examples noted above, small to medium businesses are prime targets for e-theft or social engineering scams. In these scams, unwitting victims are duped in to transferring funds to criminals that pretend to be suppliers, or other trusted parties, via email. Unfortunately, the anonymous nature of cyber-crime means that these criminals are rarely caught, and businesses are usually left with no way to recoup the amounts lost, often running in to the tens of thousands of pounds.
The quality of modern social engineering scams is now second to none, far from the attempts of yesteryear, and, with certain examples, it can be hard for the experts to distinguish the good from the bad, let alone your employees! It is important to make sure that employees handling payments are aware of social engineering scams and that as an employer, you help them with awareness training on how to spot and deal with the most common threats.
Please contact a member of our team if you have any questions. We are here to help.
“We don’t hold
much data”
Data Liability is only one portion of a cyber insurance policy and many businesses who have little or no data exposure will find they are exposed in a number of other ways. Normally, the first party covers are much more applicable to businesses with little data i.e. Business Interruption, E-theft, Reputational Harm.
“A cloud or managed service
provider looks after our IT
and data”
Outsourcing your IT is a fantastic, cost effective way of managing your data but remember that Cloud Providers are a business like any other and can be hacked or exploited in the same ways. If your cloud or managed service provider loses your data, you will remain responsible. You may be able to claim compensation by entering extensive legal proceedings, but you will have no support to ensure your survival in short term. To find yourself with no network, no contacts, no files and no way of reaching your clients would be disastrous.
“Our IT manager/provider
says we’re secure”
As brilliant as that may sound, nobody is ever entirely secure when it comes to cyber risks and crime. Businesses can spend millions of pounds on cyber security programs but it will never eliminate simple human error. Your staff are the first line of defence against cyber criminals but, clearly, they have a day job to do too. Accidents happen and anyone at any level risks opening a bad email or attachment.
“We’re not big enough,
criminals don’t attack
businesses like mine”
Increasingly, we are seeing that threat actors cast a wide net when deploying their attacks. They only need one individual to fall foul, and in the case of small to medium businesses, they’re not fussed who that one individual is. In addition to this, threat actors are also targeting smaller businesses that are in the supply chain of larger targets. A small to medium business will normally have a much lower spend on cyber security and it is for this reason that cyber criminals see them as a back-door entry to the large, corporate organisations.
“I can’t afford Cyber
Insurance”
Premiums with OSR start from as little as £97 and limits can be amended to suit whatever your budget allows. ‘Some protection’ is better than ‘no protection’ and all OSR policyholders get 24/7 access to our cyber emergency helpline, IT forensics technicians, lawyers and PR experts, regardless of premium spend (paid for by OSR!).
T: +44 (0) 20 3675 0910 E: support@optimumsr.co.uk W: www.optimumsr.co.uk 150 Minories, London, EC3N 1LS
