Cyber-attacks are becoming a big threat to all sized companies. Generally, people think it is only the large firms which get affected, yet many Small and Medium Enterprises (SMEs) are affected by hackers. This type of attack is becoming more and more common. In fact, it is estimated that fraud and cyber offences make up 47.3% of all crime according to the crime survey of England and Wales conducted by the Office of National Statistics.
What is cyber liability insurance?
For any business, however large or small, cyber liability is an issue. If your company uses any form of IT system, them it would be in theat. IT has become a vital tool in every aspect of business. Which now extends to holding and protecting customers’ data and information. This could be very dangerous for the business in regards to potentially leaking out customers’ personal data without consent. Therefore, Cyber Liability insurance will protect your company from any threat presented by attackers.
How many SMEs have been affected?
According to data produced by Zurich, 875,000 SMEs across the UK have been affected by a cyber-attack within the last year. Of these companies which were hit, just over one fifth reported that it cost them more than £10,000 and one tenth stated that it cost them over £50,000.
It can be a damaging effect for SMEs if they receive a cyber liability breach. With SMEs usually being a good target due to them having little or no insurance/cover. As it is a huge and damaging effect to the company, around 60% of small companies go out of business within 6 months of a cyber-attack. Showing the huge impact of any attack.
Only 9% of UK SMEs have insurance put in place to protect from a cyber threat. This is ridiculously low, as many SMEs would not be able to pick themselves up and continue to carry on their business if they were hit by a cyber security breach. Usually companies only take out insurance once they are hit with a cyber-attack, which is too late. Yet the positives of taking out insurance is much greater than waiting to get caught.