Cyber Crime is one of the most common topics in the news at the minute. Several high profile businesses have fallen victim to attacks by criminals, fraudsters or foreign government agencies.

The fallout of an attack or fraud will often lead to a review of whether the company was to blame or not. Did the business take the appropriate precautions to safeguard customer data, was there any human error on the part of the business? The business will then need to deal with the financial implications of interruption to business, income loss, damage management and repair, as well as dealing with the PR fallout of the attack.

So what can businesses do to protect themselves?

Whilst several commercial policies protect against certain aspects of a cybercrime, many businesses are now buying a specialised cyber insurance policy. This policy offers protection for those who:
• Hold sensitive data belonging to their customers. I.e. names, addresses or bank details;
• Rely on an IT system to conduct their business
• Process payments via card information.

Cyber Insurance is designed to assist businesses that rely on IT, to rebuild following an attack. A policy will also include assistance with managing the incident, which can prove to be vital should there be any damage to your reputation or if you face regulatory enforcement.

When it comes to the cover offered, cyber risk falls into two categories, first or third party. A first party policy will protect the business’ assets, whilst third party is designed to protect the assets of others, such as your customers. Most policies will cover both, however most SME’s can’t afford or possibly do not require both which is why it’s possible to choose the level of cover.

With recent figures showing that cyber crime costs UK businesses &1bn a year, it makes sense to take steps proactively to protect yourself against an attack.