Across the modern business landscape, all companies collect and store personal information about customers, employees and suppliers. As technology continues to grow and evolve, so does the frequency of data breaches associated with theft, loss or mistaken release of information. Therefore, if your business is present in the online world, it is vital you take the steps to protect it from any chance of a devastating cyber attack.
Research from Tech UK (2019) has revealed that 42% of small businesses have experienced a cyber-attack in the last year. With Statista (2018) reporting there is over 132,000 small businesses in Northern Ireland, this is a growing concern, as small to medium-sized businesses with fewer data security resources are particularly vulnerable. In March 2019, Business in the Community launched research to coincide with ‘Would You Be Ready?’ week, highlighting that 40% of small businesses have not taken any action on cyber security in the past 12 months. Alongside this, more than three quarters of small UK businesses have no policy for controlling access to their data systems. However, do not be mistaken, this does not mean all large businesses are safe; no company is immune to a cyber threat.
Investing in a strong cyber insurance policy can help protect your business against the financial impact of a cyber attack and will provide peace of mind and a high-quality service across digital platforms. With the average cost of a security breach between £65,000 and £115,000 for a small business, cyber insurance is a priceless investment. A report by the Department for Digital, Culture, Media and Sport and the National Cyber Security Centre (NCSC) claimed that more than half (57%) of businesses who had suffered a recent breach; the incident had first been spotted by employees rather than by software. In light of this, it is recommended that, alongside having cyber insurance, you must also adequately manage your business cyber systems, including training employees to identify potential breaches.
It is imperative when researching your cyber insurance policy, that you identify what is included, ensuring all of your business areas are covered. Key considerations when choosing cyber insurance include whether the policy provides cyber fraud and cyber liability, incorporating data breach and loss of business income. With GDPR now fully implemented, much stricter policies are required and higher fines can be incurred for lax data security, meaning that the demand for a business to possess strong cyber insurance policy will only continue to grow.