The Rising Importance Of Cyber Security Insurance When Working From Home

Cyber Safety

With many businesses, such as Sky and Twitter making the shift towards working from home permanently, it is these pioneering businesses which typically pre-empt a wider shift in attitudes towards business culture and the workplace, it is only a matter of time before smaller businesses are enticed by the benefits that working from home could bring.

These benefits, such as reduced overheads, more flexibility and a wider hiring range can save the company a tremendous amount of money in the long term, but what about the negative impacts of such a shift? The British National Fraud Intelligence Bureau has reported a huge increase in cyber crime which has directly been linked to Covid-19 and a shift to working from home.

 

How Working From Home Impacts Cyber Security

 

Whilst a personal computer being hacked can be devastating to a family, causing a loss of bank accounts, social media and even putting friends and family at risk, a computer that is hacked that also has access to sensitive work files, documents and customer information can have a much more devastating impact on not only the business being hacked, but also their clients, suppliers and everyone who interacts with them.

These attacks are becoming increasingly sophisticated, a personal computer that has been compromised because of lacklustre cyber security can infect a company computer, and inherently cause damage to the business even though the security on the company device is up to date and corporate standard.

This creates an issue for employees, not only do they need to secure their own devices but their childrens, spouses and anyone that visits their house to use the Wi-Fi. Even if that is achieved – there’s still no guarantee that the network and work computer will be secure as anti-viruses typically lag behind the most advanced viruses and malware.

This is without taking into account employee error which accounted for 90% of cyber attacks in 2019 according to the ICO.

 

Cyber Liability Insurance Is The Only True Failsafe

 

Even with the top cyber-security applications being used and being up-to-date, there’s still no guarantee that you’ll be safe, and so having top cyber security insurance is the only way you can truly be safe from attacks on your business.

 

The Cost Of An Attack

 

According to Hiscox, the cost of a cyber attack on small businesses is £200k, with the Covid-19 pandemic having an impact on business savings across the board, without cyber insurance this would likely be crippling for many small businesses and would result in redundancies, lay-offs and potential bankruptcy. 

With Cyber Liability Insurance, many of these risks can be mitigated and what would be an absolutely devastating attack could be reduced to a major inconvenience, harmful to the business but nothing compared to the critical event it otherwise may have had.

 

What Does Cyber Liability Insurance Cover?

 

Cyber Liability Insurance covers the losses relating to damage or loss of information from IT systems and networks. This means that although you may not be able to prevent all cyber attacks, the damage will not be significant to your business.

These policies can potentially cover reputational damage as well as if sensitive information about your customers is taken by malicious hackers. On top of this, these policies typically cover the assistance and management of the incidence itself, so it can be resolved as quickly as possible and damage, downtime and ultimately the cost of the attack will be minimised. To see a more comprehensive list of what exactly our Cyber Insurance policies cover, click here.

 

We Can Help Protect Your Business From These Attacks

 

At Todd and Cue, we are experts in business insurance and ensuring that you get quality insurance cover that is comprehensive and affordable to your business. If you’re unsure about Cyber Liability Insurance or want some guidance on covers, how to get it cheaply and how we can help, please don’t hesitate to get in touch

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