According to the Ponemon Institute’s 2015 report ‘Global Cyber Impact’, 80% of companies worldwide are likely to suffer a data breach within the next 12 months – yet only 1 in 5 have a Cyber Liability policy in place.
Surveying 2,243 company representatives across 37 countries, the report released startling conclusions for today’s business owners. Despite the statistics indicating an overwhelming likelihood of a cyber breach, the vast majority of companies are significantly under-insured in this area, with most businesses more likely to purchase fire & property insurance than to take out a Cyber Policy.
This can be attributed to a lack of knowledge surrounding Cyber Coverage and Cybercrime.
SMEs Most Likely Targets of Cybercrime
Cyber criminals know that large corporations have extensive budgets for Cyber Security. This has resulted in hackers moving lower down the chain and specifically targeting SME businesses, as their security systems are easier to infiltrate and they often won’t have the administrative, financial and legal resources to fight back.
The cyber criminals of today are often advanced criminal organisations, looking for private information that they can sell on the black market. Any business that stores personal or sensitive information on clients, staff or management, or that uses cloud & IP solutions, has become a desirable target for hackers.
Cyber Risk is Not Covered in a General Liability Policy
While some business owners believe that their General Liability policy covers cyber risk, others assume their company is too small to be at risk of a data breach.
If your business relies on the internet, email, websites or computer software to operate, then your current insurance does not cover you for one of the most important aspects of your business: your data.
In order to appropriately protect your business from a cyber attack, you must have a specific cyber insurance policy in place. Cyber Insurance is designed to address the exposures you face from relying on the internet and computer programs, as well as from storing private information about your clients.
Depending on your business needs, a Cyber Insurance policy may cover:
- Privacy Protection – Third party claims from a failure to keep data secure.
- Breach Costs – Reimbursement of your own costs when a data breach occurs.
- Business Interruption – Compensation for lost or reduced revenue.
- Cyber Liability – Third party claims as a result of content in email, on the intranet, extranet or website.
- Hacker Damage – Reimbursement for costs to repair, replace or restore systems and data as a result of a hack.
- Cyber Extortion – Payment of ransom demands, and specialist consultant fees, where a hacker holds, or threatens your network, programs or data.
Speak to your PSC Connect Authorised Representative to find out more about cyber risks. With extensive knowledge in the area, they can assess your specific needs and recommend the most appropriate insurance solution for your business.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.