You will be aware of the increasing number of cyber attacks affecting businesses of all sizes, and you will have heard of the new GDPR legislation. But how will this affect your small business?
A common question put to our team of insurance brokers is: “I run a small business, do I really need Cyber and Data Protection Insurance?”. Although each business has a different set of priorities and requirements, the resounding answer to this question is ‘yes’, and this is why.
According to the Federation of Small Businesses (FSB), cyber crime is one of the fastest growing risks to small businesses and cost small business victims nearly £3,000, taking them more than two days to recover.
Seven million cyber-crimes are committed against small businesses every year. This equates to 19,000 cyber attacks on small businesses every day. So, what can you do to protect your business?
Along with ensuring you have stringent cyber security policies in place, and your business is GDPR compliant, you should also have adequate cyber and data protection insurance, to protect your business, should the worst happen.
Cyber and data protection insurance cover provides your business with financial protection and the full support from a team of IT forensic, legal and PR experts. This team will protect your reputation, investigate, and diagnose the attack and help you to get your systems secure and safely up and running again.
You will also gain access to a team of specialists who can negotiate with cyber-criminals on your behalf, particularly relevant with ransomware attacks. These specialists can also advise you on how to ensure an attack doesn’t happen again.
Cyber and data protection insurance will also provide your business with financial protection from regulatory awards, fines or penalties imposed against you for data breaches and it covers potential third-party damages and costs associated with an investigation in relation to a potential data breach or notification.
It is just as important that small business have the right insurance in place to protect their business as larger businesses as cyber attacks and data breaches can hit any business at any time.