Cyber insurance – not just for online firms
THERE is a lot of talk about cyber crime at the moment but what is often not appreciated by many business owners is the fact that they don’t need to trade on the web to be at risk, any company that holds electronic data is a potential target.
Jo Oliver, Commercial Insurance Specialist at NFU Mutual in Preston said: “A recent case where a major supermarket’s disgruntled employee maliciously leaked employee data, including national insurance numbers and bank details, demonstrates the fact that cyber risks are not limited to financial crime either.
“The stolen data was published on several websites and exposed the supermarket brand to significant financial liability, necessitating the company to provide all of the affected employees with fraud protection insurance. They also had to counter negative publicity to reduce reputational damage.”
This scenario could take place in any retailer, hotel or restaurant. In fact, any business in the country that holds customer or employee data on systems which is why specialist cyber insurance is increasingly becoming a key consideration for businesses.
Specialist cyber insurance can offer protection for a business directly and its customers, suppliers or employees against a range of possible outcomes following a cyber attack including: business interruption, income loss, theft, loss or damage to assets or data, legal fees and expenses and reputational damage.
In a world becoming more digital by the day, we can only expect the cyber threat to businesses will increase and therefore so too will the need for specialist protection. In addition, the EU is proposing new regulations to place the responsibility for declaring data breaches on the holding company.
Failure to comply with this may result in fines and potential restrictions in licences which could have harmful effects on how a business can trade, therefore it is essential that businesses seek advice to fully understand their responsibility for protecting data.
Jo added: “As an experienced commercial insurer, NFU Mutual works personally with business owners to gain first-hand insight into their business, how its works and the challenges that they face.
“We are increasingly working with our commercial customers to fully explore their exposure to cyber risk and, when appropriate, provide them with tailored solutions to protect their business.”
If you would like to discuss the cyber risk of your business or speak to one of our commercial insurance specialists you can contact NFU Mutual Preston on 01772 911771 or your local office www.nfumutual.co.uk/branches
