Why Cyber risks matter & what you can do about them

Why Cyber risks matter & what you can do about them - March 22, 2016

  • Posted by Christine Jones in Uncategorized
  • March 22, 2016
  • No Comments

Customer data breaches and software glitches continue to make the headlines, and probably will for some time to come. Should your business take steps to improve customer data storage and consider Cyber Liability insurance?

High profile cyber incidents are becoming a regular feature in the news. In June last year a major high street bank uploaded some erroneous software leading to some serious implications for its customers, and there was the customer “data breach” of a large electronic gaming company in 2011.

The highlights from this incident are as follows:

  • Two separate data breaches in April and May 2011 lead to over 100 million individuals details “exposed”;
  • 12 million credit and debit cards compromised;
  • Estimated to spend US$180 million just on these breach related costs; and
  • UK Information Commissioners Office fined them £250,000 in January 2013 for “preventable data breach”.

To add to their woes, it appears that they did not purchase Cyber Liability coverage, relying on their public liability policy to respond. However, public liability policies cover “bodily injury” and “property damage”, and Cyber incidents are outside of the scope of conventional cover.

A cyber risks policy can cover organisations for:

  • The costs to restore the network and data following unauthorised access, computer virus, denial of service attack or operational error. This would cover those responsible for the high street bank’s software upload last year.
  • The loss of income or extra expenses following unauthorised access, computer virus or “denial of service” attack. Note this consequential loss cover does not extend to operational error and has to be met by the business.
  • Electronic theft and fraud, and loss of or damage to customers’ data on your network. This would be the section eletronic gaming company would have needed.

For every big headline there are numerous smaller incidents. Data loss can also be physical, for example, loss of an unencrypted laptop or memory stick. It is estimated that 45% of incidents occur from physical losses.

Pound Gates arrange Cyber cover for numerous clients. If your answer is yes to any of the following questions, please contact us for a quotation or to discuss how you can manage this risk:

  • Does your business hold personal data on customers or clients?
  • Is your reputation reliant on customer data?
  • Do you rely on your own internal network and the internet for your business?

To speak to a Pound Gates expert call 01473 346046 or e-mail: info@poundgates.com

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