DO I REALLY NEED CYBER INSURANCE?

I often talk to business leaders who tell me that their company doesnt need Cyber Liability cover, that their IT systems are up to scratch and they can't find the financial loss when we pitch the need for Data breach cover.

I could type up my spiel, I could write reems upon reems on how vulnerable all businesses are, alas I'm simply going to list some very interesting facts:

£35,000 - £65,000 is the average cost of a Cyber/Data Loss
Most policies cover claims being made for data lost offline, including documents left on trains or in taxi's
Databreaches have increased by over 150% in the last 4 years.
There are over 7,000 DDoS attacks recorded daily
The average time to recover from a DDoS attach is 12 hours at the cost of £12,000
Businesses can suffer a breach even if it is'nt a crime - 25% of breaches caused by personnel negligence.
70% of all companies tageted are small businesses
Fines for a data breach of 4% annual turnover (not profit) or £17 million, whichever is greater for a single breach to be implimented by the ICO.

Add to that this simple misnomer - How many times have you had your house burgled in your life time? Twice, maybe three times maximum? How many dodgy emails, viruses or attempted hacks have you been on the end of in the past year? I'd fathom far more than 20. Yet you are more likely to insure your house for a theft than your business for a Cyber or Data breach.

It's time to wise-up, you wouldnt drive a car or go on holiday without insurance in place, why would you run a business any differently?

Recent Nobel prize winner Bob Dylan once sang "The times they are a changing", he's never been more right, embrace change, embrace the digital.

If you want to discuss Cyber Liabilities contact your insurance broker or alternatively contact me on the details noted below.

-Tristan

Tristan is the Client Relationship Manager - James Hallam Corporate Risks - Birmingham

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