Digital information is to businesses what a white water rapid is to a hydroelectric power plant. It fuels things. Whether it be customer information, competitor data or market research—digital information is something businesses can’t live without.
Yet the volumes of digital information compromised through cyber-attacks continues to rise, with major brands continuing to lose sensitive data, and market share. The issue has become so serious that the Lloyds Risk Index 2013 now puts cyber risk with high taxation and loss of customers as the three biggest concerns for management.
So it would come as no surprise to learn that in the past few years, there has been growing demand for cyber insurance. Cyber insurance can cover a variety of things but typically it covers cyber breaches, including the cost of putting things right after an incident, as well as fines. An actual cyber event package is likely to cover the following:
– Technology services professional liability
– Technology products liability
– Digital publication liability
– Data breach security liability
– Data privacy liability
– Business interruption/loss of data
– Extortion demand
One would think this was a no-brainer for virtually any company, especially those who hold particularly sensitive customer information. Yet in the UK and across Europe, most companies don’t include insurance as part of their IT strategy. Even in the US, it is mostly healthcare companies and non-profits that opt for cyber-attack insurance.
But how concerned do companies really need to be?
The World Economic Forum placed cyber-attacks amongst the top 10 most dangerous global threats in its Global Risks Report 2015. This means they believe that cyber-attacks should be viewed in the same way as other accidental or third-party risks (such as health and safety or extreme weather). Additionally, as one of the leading IT companies in London, BTA has seen first-hand how devastating a cyber-attack can be to businesses, particularly when it is customer information that is compromised.
100% protection is expensive, and impossible
Organisations that get the basics of cyber security right can protect themselves from a significant proportion of attacks. UK government advice suggests that 80% of cyber-attacks can be mitigated by following their recommendations for establishing a basic level of cyber hygiene.
There is a balance to be struck however. Excessive security controls can reduce the capability of an organisation to collaborate effectively, and can cause employees to look for workarounds – and as a result, actually increase their vulnerabilities. Plus excessive cyber security is usually extremely expensive. Cyber insurance gives organisations the opportunity to focus on those areas where they can make the most difference in significantly reducing the chance of a successful attack in the first instance. Then they only need to insure what’s left.
Getting the right advice however, is crucial to ensuring you have the right balance of security measures and insurance. And ensuring your cyber security strategy is implemented, updated and maintained correctly may mean the difference between exceeding revenue forecasts and bankruptcy. If you are interested in a free security consultation to determine what your business may need in terms of cyber protection, perhaps start with a free consultation from BTA – which includes a network and security audit and detailed report highlighting areas of vulnerability. As one of the leading IT companies in London, BTA will be able to give you a comprehensive assessment of where your cyber strengths and weaknesses lie.
BTA has been helping businesses with managed IT services for more than 20 years. Specialisations include cyber security, data back-up and business continuity, comprehensive outsourced IT and network services. Considered one of the leading IT companies in London, BTA has the depth and breadth of experience to complete even the most complex projects. For more information, please email firstname.lastname@example.org