The Public Liability Insurance Blog

Cyber crime up, yet damage limitation measures down, says YOUR Insurance

Cyber theft

Despite 87% of small businesses falling victim to cyber crime in a year*, YOUR Insurance suggests six out of 10 have no idea what cyber theft is and only two in 10 think they may be insured against it**.

A recent Government Information Security Breach Survey found an increasing number of small businesses suffered third-party hacking (up 11% on the previous year), yet when YOUR Insurance asked clients to quantify cyber theft, only 39% could identify it as the stealing of intellectual property or confidential data.

Six per cent of respondents felt their business was at risk, even though any firm relying on the internet or undertaking electronic financial transactions is exposed to cyber theft. And such is the confusion over what defines cyber crime, none could confirm and 22% were unsure if they had cover to help with damage limitation and business recovery.

The Government Survey suggested whereas once criminals, hacktivists and competitors were the main suspects, nowadays it’s more likely to be in-house technology, processes and people.

A typical cyber policy will;

  • Enable a firm to detect and restore damaged communication systems
  • Reimburse lost profits following damaged systems or lost data
  • Provide access to crisis management, public relations, forensic and security experts
  • Set up a temporary storage facility
  • Meet investigation costs and any Government or regulatory-imposed fines
  • Pay costs incurred in notifying data protection authorities and clients following a data loss
  • Pay for credit monitoring and setting up of a call centre to deal with customer enquiries
  • Manage and meet the costs involved with cyber extortion

Annie Plaskett, YOUR Insurance Senior Business Manager, comments: “A security lapse, on average, could cost a small firm up to £60,000 so it’s important businesses understand where and how their breaches can occur and implement security systems and training to reduce the risk of it happening. If an incident does occur, insurers and the services they provide can be instrumental in getting a business up and running again.”

To find out more visit http://www.yourinsurance.co.uk or phone 0800 107 8949.

Notes to Editors

* Dept for Business Innovation & Skills 2013 Information Security Breaches Survey http://www.pwc.co.uk/assets/pdf/cyber-security-2013-exec-summary.pdf

** YOUR Insurance telephone survey, undertaken May 2013, 100 respondents.

YOUR Insurance was set up in 1997 as a specialist online business insurance provider, sourcing cover via a panel of market-leading insurers.

YOUR Insurance is part of Towergate Underwriting Group Ltd - Europe's largest independently-owned insurance intermediary offering over 200 specialist insurance products. It’s authorised and regulated by the Financial Services Authority.

Media Enquiries

Annie Plaskett, YOUR Insurance, T: 01883 724028, M: 07515 701203 or E: Annie.Plaskett@towergate.co.uk

Francesca Breeze, Freelance Journalist/PR Consultant, T: 01273 421115, M: 07710 963838 or E: Francesca.breeze1@ntlworld.com