While the internet creates convenience for small businesses, there is unfortunately some bad with the good. The realities of cyber security risks exist on a larger scale than most anticipated.
For instance, 875,000 SMEs in the UK have been hit by a cyber-attack in the 12 months leading up to July 2017. The damage a hacker can create is nothing to wave off or ignore, because over a fifth of the affected SMEs have reported costs of up to over £10,000. One in 10 said the breach cost more than £50,000. You can’t run or hide from the fact that hackers are out there, but you can protect your business with cyber liability insurance. This policy is designed to help your stability in the event of a data breach. However, there’s a lot to consider and check, to ensure your practice is compliant with the terms of your policy, otherwise getting insurers to pay up might become quite the task.
Here are some things to keep in mind:
Certain insurers might request that you implement specific safeguards during the policy period, in order to decrease the risk of data breach or loss. Failure to comply might void your coverage. Such requirements might include encrypting data, installing firewalls and security patches, and following password protocols. We realise this may all read as a confusing blur, at Weir Insurance we will go through the clauses and conditions of your policy with you. We will also regularly review your activities with staff to make sure they’re following the small print.
Misrepresentations or concealments
It is vital to go through your data point by point, and leave no detail unread. Because it is not in your best interest to accidentally or intentionally misrepresent your data management procedures. If you do so when arranging the policy, your insurer could argue that your cover is invalid. Not only that, but they might even refuse to pay out even if the misrepresentation was in a completely different area to the breach.
As unsettling as this may sound, for encryption procedures, data storage, and back-up arrangements, just make sure you’re open and honest with us. It’s in your best interest and ours to find the best cover based on the information you’ve given. If there are points that you’re unsure or nervous about, we’ll be able to recommend risk-reducing improvements.
If you have any further questions about your cyber liability insurance, or you want to check you are complying with your policy terms, get in touch with our friendly advisors at Weir Insurance today.