Cyber Insurance For Dummies

 

Cyber Insurance is just a gimmick. Nobody will hack you, will they?

You hear about cyberattacks in the news when hackers break into the systems of some of the world’s biggest companies. Just because we only hear about the big companies, it doesn’t mean small businesses are not targeted.

In fact, a recent study by Hiscox showed small businesses in the UK face 65,000 cyberattacks every single day. While most attacks fail, a small business is hacked every 19 seconds costing an average £25,700 to ‘clean up’. So, still think it’s a gimmick?

What is a cyber-attack?

Simply put, a cyber-attack is a digital attack on your digital data or systems. Most businesses store information online or in folders on computers. This could be basic information, confidential company information or sensitive data about your customers.

A successful cyber-attack will gain access to some or all of these and will choose what to do with it. Some hackers will shut down your whole system. Others will contact you and try to extort you in exchange for control of your system or the data.

How do hackers do it?

There are lots of intricate ways hackers work. They may gain access through a ‘back door’, essentially a loophole in your IT defence. Or they may use an ‘email worm’, a virus-laden program sent as a seemingly normal email. Other ways may include a ‘denial-of-service’ attack which aims to flood a system with false traffic, or a ‘trojan horse’, a tool which tricks the computer into thinking it is a helpful program.

Why do hackers hack?

Money, right? Not always. Whilst money is often a primary target, the nature of hacking means that hackers vie for respect and attention by breaching intricate systems to ‘show off’ to fellow hackers. The public sector must be especially vigilant because attacks on these businesses may have political or economic causes which present much wider issues. One such example might be a cyber attack on an animal-testing company by animal rights activists.

What if you have your own IT department to sort this?

You might think that because you have a dedicated IT system or consultant who deals with any IT issues, you’re safe, right? Incorrect.

There’s a reason why the world’s biggest look to hire the world’s best hackers and cybercriminals. Professional hackers are remarkably skilled at what they do, and no system is impenetrable. In fact, most companies are at the mercy of hackers and can only hope they are not chosen to be hacked.

Whilst an IT department can inform you of a cyber attack and may be able to fix or minimise the breach, what about the money you lose out on? Who will tell your clients? What about the reputational harm? How will the media react?

So, what about Cyber Insurance?

A typical cyber policy will include any liability the breach has which may incriminate you or affect your relations with third parties. The policy can cover all types of risks including ransomware and malware, and we can assist with notifying clients.

A cyberattack doesn’t end when you regain access, though. Often, the loss goes on for weeks or months as customers and prospects lose trust in your services. Our policy can account for this under Business Interruption, allowing you to continue with the day-to-day running of the business without worrying about cash flow, claims made against you and everything else which often follows a breach.

At Hinks, we make it about you.

We’ll work with you to make sure you only pay for what you need without scrimping on cover features.

To find out more, just call us on 01482 323424.