The reality of cyber security risks
Last year over 875,000 SMEs in the UK were hit by a cyber attack. It’s no wonder that businesses are waking up to the reality of cyber security risks. The losses from a cyber hack can be detrimental, with over a fifth of the affected SMEs reporting costs to their business of over £10,000. 1 in 10 said the breach cost more than £50,000.
Grove & Dean Corporate Insurance understand the need to protect your business and the importance of cyber liability insurance. Having this in place is a major step towards staying on your feet in the event of a data breach, however, making sure your working practices are compliant with the terms of your policy will reduce wiggle-room when it comes to insurers paying up. We’ve put some tips below for you to be aware of.
Insurers may require you to implement particular safeguards during the policy period to decrease the risk of data breach or loss. Failure to comply might void your coverage. Measures may include encrypting data, installing firewalls and security patches and following password protocols.
At Grove & Dean your account executive will go through the clauses and conditions of your policy with you to ensure you understand your insurances and to answer any questions. It is a good idea to regularly review your activities with staff members to make sure they’re in line with the small print and avoid potential lack of cover.
Misrepresentations or concealments
If you accidentally or deliberately misrepresented your data management procedures when arranging the policy, your insurer could attempt to argue that your cover is invalid. Unfortunately, they could refuse to pay out even if the misrepresentation was in a totally different area to the breach.
From encryption procedures and data storage to back-up arrangements, make sure you’re open and honest with us when attaining your cyber liability insurance, that way we will find the best cover based on the information you provide. If there are weak spots, we’ll be able to recommend risk-reducing improvements.
If you have any further questions about your cyber liability insurance, or to check you are complying with your policy terms, please call Grove & Dean Corporate Insurance on 01708 436 811 to discuss any concerns.