With last month’s introduction of the General Data Protection Regulations (GDPR) companies throughout the UK are considering data protection, and the consequences of a data breach, more than ever before. The new laws are designed to give EU citizens more control over how businesses use their personal data. It also gives governments more power to investigate and fine organisations who fail in their duty to protect this information.
Now your business has updated its data protection policy, it is time to consider how you insure your business data.
According to the Federation of Small Businesses Cyber Resilience Report, 66% of small firms surveyed were victims of cybercrime in 2016 alone. This is in addition to the seven million cybercrimes affecting SMEs in 2014 and 2015. The total annual cost of cybercrime in that period alone was £5.26 billion.
Cyber insurance can compensate you for the compromise of your systems and data. This can include the costs of notifying your customers, monitor your credit rating in case it has been affected and investigating the reason for the data breach. If that breach has been caused by a hacker or virus, it will also the cost of removing the offender from your systems.
If your organisation falls victim to a hacker who steals data or locks down systems, then demands a ransom to avoid leaking the information or to make the systems available again, it is important to never pay the ransom. Whilst Cyber cover cannot cover a ransom fee, it can cover the associated costs of the disruption. In the event that vital business data is lost or compromised, you may be able to claim the cost of restoring the data and reinforcing the system security too.
Under their new powers, the UK Information Commissioner’s Office can fine businesses up to 4% of international turnover, or up to £17.5 million for infringement of GDPR. Any firm with a data breach reported may be subjected to an extensive investigation by the ICO ahead of a verdict. Even in a small business this could be a highly disruptive and costly process. Ensuring you have Cyber cover that includes breach costs could save your business. 60% of UK companies that have been a victim of cyber-attacks are out of business within six months.