Cyber Liability Insurance & Managing Data Risk
News stories of data security breaches and cyber-crime are becoming more prevalent and worrisome to organisations, businesses, and individuals. In 2015, the government joined forces with The City to set up a UK Cyber Taskforce. They worked with a global risk advisory firm to publish a report on cyber risks and encouraged organisations to purchase Cyber Liability insurance policies.
Statistics from the report make for sober reading:
81% of large businesses suffered a cyber security breach
60% of small businesses suffered a cyber security breach
With such a significant threat, it is essential that organisations consider the risk and take steps to minimise it and increase their resilience. We advise businesses to review their cyber-security in terms of People, Systems, and Risk Transfer, as outlined below.
People: The Weakest Link in Cyber Security
Humans are often the weakest link in the cyber-security chain. We write down passwords, forget to lock computer screens, and reuse passwords across multiple accounts. In fact, 65% of staff use a single password for all their applications, creating vulnerabilities in the event of a breach.
Training and competency of IT users are paramount. Staff need to understand the risks they face and how best to avoid them. Simple changes can have a massive impact:
Are policies clearly communicated and implemented?
Is more training, auditing, or monitoring required?
Company culture also influences cyber-security. Engaged employees who follow a culture of integrity and accountability significantly reduce the chances of data leaks.
Talbot Jones Risk Solutions can help provide guidance on addressing these questions and developing policies and procedures tailored to your organisation's needs.
Systems: Backups and Security Software
Regular data backups are essential. Establish a clear backup procedure to ensure swift recovery following a cyber-attack. Key questions include:
How often do you back up data?
Where is it backed up: Cloud, external hard drive, or elsewhere?
Are backups secure and stored safely?
Software, antivirus, and malware detection programmes are also crucial. Ensure yours provide sufficient protection and are up to date. Experts such as Amshire Solutions can advise on the best products for your organisation.
Risk Transfer: Cyber Liability Insurance
Risk Transfer is the practice of transferring risk to an insurer in exchange for a premium. Cyber Liability insurance can provide a valuable safety net.
Recent examples highlight the diversity of cyber threats:
AshleyMadison Hack – external hackers
Morrisons employee fraud – internal theft
East Sussex NHS breach – carelessness
Cyber Liability cover may include:
Costs of notifying regulators and investigations
Loss of revenue or additional costs from the breach
Call centre support for affected individuals
PR crisis management
Appointment of privacy lawyers
Forensic IT investigation services
Note: Coverage varies between policies.
Talbot Jones Risk Solutions offer a free insurance review of your Cyber Liability policy and can help determine if this cover is suitable for your business. Call 0191 438 79 77 for assistance.
