Cyber Risk for Small Businesses is a real threat and not one that should be ignored.
You don’t need to be a TalkTalk to be exempt from a cyber attack….. Whether you are a small or large business you still have the same exposures albeit on a smaller scale.
74% of UK SME’s have been subject to a cyber attack , the average cost to a business is £310,800.
Some of the main exposures that are caused by a cyber attack are as follows :-
1.Loss of confidential data ( employees and customers )
2.Unauthorized access of your computer firewalls by a hacker ( internal or external ) that allows the stealing of your own intellectual property rights
3.Business Interruption where you are unable to transact business.
4.Privacy breach expenses that will need to be addressed in the event of a data breach.
5.A loss of reputation due to a hacker attack and the impact on future trading.
6.Regulatory costs incurred by regulatory bodies such as the Information Commissioners’s Office Office ( ICO)
7.Damage to your computer systems by a malware cyber attack
8.The inability to use or access your website
A Cyber Insurance policy will offer you protection for these types of loss scenarios.
Cyber insurance for small businesses however should only been part of the process to protect your business. A robust security risk management system should also be in place. ‘ Cyber Essentials is a government backed initiative and is a good tool to obtain some sound basic guidance , otherwise there are many cyber security specialists that can assist with the implementation of this.
By way of example consideration is given to the following:-
What internal factors could make a business vulnerable to a data breach ?
Accident / mistake by an employee entering data on a computer
Phinishing attack as a result of an employee clicking on an e-mail link
No regular change of passwords
Lack of updating on anti-virus and anti-malware software
Lack of encryption of devices
Accessing public wireless making employees devices vulnerable
Poor education of employees on data security
Cyber insurance for small businesses is therefore an important factor in the protection of a business from cyber security threats in this challenging business environment.