27th September 2023

Six reasons why you need Cyber Insurance for your business

Cyberattack is a key risk for all businesses, with attacks happening on a daily basis and many becoming increasingly difficult to spot. As businesses continue the shift towards digitalisation, it’s important to be aware of the latest trends, educate all employees in being cyber aware and, in the event of a cyberattack, know what to do to minimise the damage to your business and customers.

Here, we share six insights, giving you advice and guidance on protecting your business against cyberattacks.

1. All businesses are at risk, including yours

If you are involved in a claim, you could become personally liable for any damages.The latest Cyber Security Breaches Survey 2023, published on 19th April 2023, by GOV.UK reveals that 32% of UK businesses have suffered a cyberattack in the last 12 months and that any business, big or small, can be targeted. Most criminal activity isn’t targeted at a particular business size or industry, it’s more a matter of criminals using sophisticated tools to search for system vulnerabilities.

2. People make mistakes

It’s important to understand that your employees will not always be able to spot the attempts of a cyberattack and this is what cyber criminals rely on. According to the Cyber security skills in the UK labour market 2023 report, published by GOV.UK on 24th July 2023, 50% of all UK businesses have a basic cyber security skills gap.

3. Time is of the essence

The speed at which you react when undergoing a cyberattack can make a huge difference in its lasting effect on your business. The first hour is known as ‘the golden hour’, where effective action can dramatically reduce the attack’s impact. This is where an effective cyber insurance policy comes into its own, providing a rapid response to the attack and co-ordinated access to a team of dedicated experts – if necessary, dovetailing with your existing risk management strategies.

4. Protect your operations and reputation

Not being able to access your vital IT systems due to cyberattack or a data breach could result in significant business interruption and reputational risk to your business. Again, a robust cyber insurance policy will cover the loss of revenue and any subsequent increased working costs, as well as PR costs in minimising reputational damage.

5. Reassure third parties

Your customers and partners need to know that cyber security and protecting their data is taken seriously by your business. Having cyber insurance in place reassures them that should an attack occur, adequate protection is in place, and appropriate steps will be taken to protect their data.

6. Keep up with regulations

As digitisation moves on at pace, there is increasing focus on Data Protection Legislation. Again, having cyber insurance in place should cover you against defence costs and regulatory fines and penalties (where insurable by law).

Protect yourself with ‘cyber hygiene’ measures

As most cyber threats are relatively unsophisticated, government guidance is to utilise ‘cyber hygiene’ measures, the most common being: updated malware protection, cloud back-ups, passwords, restricted admin rights and network firewalls. It’s also strongly advised that you review supply chain risks, in particular, the risks posed by your immediate suppliers.

Cyber insurance is essential

The report also reveals that under four in ten businesses (37%) report being insured against cyber security risks and only around three in ten assessing security risks and deploying security monitoring tools.

At Melville Burbage, we have years’ of experience arranging solid cyber insurance policies ensuring full protection from the effects of cyberattacks covering losses in revenue, increased operating costs, defence costs and any regulatory fines or penalties that may be enforced.

To find out how Melville Burbage Insurance can help to protect your business, please call us on 01635 43880 or email: info@melvilleburbage.co.uk.

gov.uk: Cyber security breaches survey 2023
gov.uk: Official Statistics
gov.uk: Cyber security skills in the UK labour market 2023
cybersmart.co.uk: 6 key takeaways from the DCMS Cyber Security Breaches Survey 2023

Melville Burbage Insurance Services Ltd,
The Old Drummers Arms, 16-18 Northcroft Lane,
Newbury, Berkshire,
RG14 1BU

Company Registration No: 0640‌4074 | FCA Registration No: 474872 | Melville Burbage Insurance Services Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Melville Burbage Insurance Services Ltd: The Old Drummers Arms, 16-18 Northcroft Lane, Newbury, Berkshire RG14 1BU.