UK firms not coping with the threat posed by cyber attacks

In this month's edition, we look at recent reports that UK firms are not coping with the threat posed by cyber attacks. 

We also advise how best to cover your business property from any potential accidents, reveal a new headache for drivers heading to Europe after next year's Brexit deadline and look at how the insurance industry can open its doors to the next generation.

Insurance industry encouraged to open its doors to next generation

 

An American educational organisation is putting forward the suggestion that millennials are far keener to forge a career in the insurance industry than they are given credit for. Gamma Iota Sigma, an international business fraternity for students of risk management, insurance and actuarial science have discovered through their own research that students are unaware of their options in the industry, and thus unlikely to be aware of what a positive and affirming experience a career in insurance can be.

“What we find is that students are enthusiastically choosing a career in insurance once they know that it is an opportunity,” offered the organisation’s CEO, Noelle Codispoti. “Where we see the challenge is a real lack of the industry sharing opportunities with students.

A broad range of interests is cited as a real pull for pursuing a career in insurance, and given the wide range of products that we offer at West Craven Insurance to make sure that you’re protected, from personal car to travel, commercial property to cyber, it’s not hard to see why.

“If you are interested in entertainment or construction or cyber or digital mediums, there is a spot for everybody to be an expert in those types of areas, while at the same time providing the benefit of insurance or insurance resources to individuals,” said Codispoti.

“Everybody knows you can be an accountant, or an economist, or an investment banker, but I think that it’s quite easy for us to get to the point where students are choosing careers in insurance based on how wonderful we think that the careers we’ve had in the industry have been.”

 

UK firms not coping with the threat posed by cyber attacks

 

In today’s world, it’s especially important to make sure that your business is protected and insured against any potential threats, and with cyber attacks causing an increasing headache for firms and with GDPR-related penalties having increased, the need to correctly insure your business has never been more pressing.

That makes recent news that companies in the United Kingdom are not responding to the threat of cyber threats, and aren’t effectively covered in the case of an attack, all the more alarming. NTT Security are reporting that 66% of UK businesses are not insured in the event of a breach of information security or data loss, with senior executives reportedly unaware if their organisation has ample protection for such instances. Such statistics are especially concerning when compared to the 81% of those executives questioned who concurred with the need to protect against security breaches without knowing if their business was covered in such an eventuality.

The report also delves further into the impacts of an attack, revealing that UK businesses pay an average of £1m to deal with the aftermath of a breach.

“With estimated annual losses from cybercrime now topping $400bn (£291bn) according to the Center for Strategic and International Studies, you would hope more organisations would be beating a path to insurers’ doors,” offered Kai Grunwitz, senior vice-president of NTT Security. “But while the insurance sector is certainly seeing growth in the number of policies being taken out to cover such losses, it’s an issue that many senior decision makers are not on top of.”

Other findings from the report include:

• UK businesses perform poorly against the United States and Singapore when insuring against both information security breaches and data loss
• The UK outperformed both the Benelux nations (Holland, Luxembourg, Belgium) and the Nordic nations
• 70 firms now offer cyber insurance, twice the amount when the same count was conducted two years ago
• Allianz are predicting that global cyber insurance premiums will increase to $20bn by 2025, a startling increase from its current $3/4bn level

If your firm is unhappy about its coverage or strategy for coping with data loss and security breaches, please contact us to discuss your cyber insurance options, or click here for a quote.

How to cover accidents onsite at your business' property

 

For many entrepreneurs, premises that are open to the general public is essential to the success of their business. Taking advantage of areas with high foot traffic and offering customers and clients a location they can visit, can give your business the help it needs to find its feet.

However, making the decision to stick up that “OPEN” sign comes with several new risks that you might not have considered. Should the worst happen, do you know what to do if there is an accident on your property?

UK law clearly dictates that the occupier of a piece of land is under a reasonable duty of care to provide for the safety of all visitors to their premises. Failure to do so could result in a customer or visitor being injured, and you could have a costly lawsuit on your hands.
What if I don’t own the premises?

Under normal circumstances, the landlord is responsible for the upkeep and safety of their properties. However, when it comes to business premises, the contract between the landlord and tenant will specify that it is the tenant’s responsibility to ensure that the property is safe for visitors.

Essentially, it is your responsibility as the owner of the business to safeguard your customers against any risks or threats when they enter your premises. Should a customer suffer an injury on your property and wish to bring a personal injury claim against you, they will need to identify whether you failed to take reasonable care.

What factors will be taken into account?
Under UK law, the owner/occupier is required to take reasonable steps to remove the risk, not eliminate it entirely. If an injured party wishes to bring a personal injury claim against your business, then the court will consider the following:

• What harm was caused by the injury?
• What caused the injury and what was the likelihood that it would occur?
• Information about the person injured. E.g. age.
• Was the owner/occupier aware of the danger?
• What would it have cost to have the threat removed?

You should be constantly aware of all the common risks in your premises, such as uneven surfaces, slippery floors, unsafe furnishings and exposed electrical fittings, as well as the risks that come with your sector. It is good practice to take precautions against these risks. E.g. providing visitors with high visibility clothing, using warning signs and cordoning off or securing dangerous areas. These precautions do not remove your liability should an injury occur, but they do reduce it.

What steps do I need to take if an accident occurs?
If an accident takes place on your premises then you need to assist the injured party. Such factors you may wish to consider are:

• Names of the people who dealt with the aftermath of the accident.
• Noting any precautions that were taken to protect visitors from harm.
• The nature of the injury and whether medical attention was required.

You should also gather as much evidence as possible of the risk itself e.g. photos of the risk that caused the incident in question.
You will also need to ensure you have a financial plan in place for dealing with the aftermath of an incident. The cost of paying for legal advice, legal costs and compensation could potentially bankrupt a business.

With a Public Liability policy, you are insured against a personal injury claim. For more information about the policy, please get in touch with us. 

Brexit could provide headache for UK drivers heading to Europe

 

With less than six months to go before the United Kingdom leaves the European Union in March 2019, a gigantic number of important issues remain unresolved as Theresa May’s Conservative government attempt to detach the country from the continent after the decision made in 2016’s landmark vote. Amongst lines of red tape regarding trade, movement and immigration, the future of UK drivers wishing to visit Europe is still shrouded in doubt, with insurers potentially needing to increase administration costs to stay in line with new regulations.

Currently, a UK drivers licence covers anyone taking a vehicle to Europe or hiring one on arrival, but in the event of a no-deal Brexit, an insurer-issued green card could be required alongside a standard driver’s licence. Once obtained, this combination would allow British motor users to drive all over the continent, but there remains plenty of uncertainty over whether any deal can be reached to maintain the current freedom that British drivers current enjoy.

At present, around 7m drivers head to the continent per year for holidays, pleasure or business, and the added complication of cost, production and distribution of any cards could see an administration cost added to any car insurance policies.

There are some positives, at least; the Department for Transport has advised that it is currently working on a deal to make sure that commercial and private motorists can continue to drive in the EU without any changes. All British drivers would also remain in the EU’s car insurance zone too, as per confirmation from The Association of British Insurers’ director of regulation, Hugh Savill:

“The Government and motor insurance bodies across Europe have already agreed a plan to keep the UK in the EU’s car insurance zone – the timeframes simply need rubber-stamping by the European Commission.”

Still, given the current nature of negotiations between the United Kingdom and the European Union, it remains to be seen if confirmation on such a vital aspect will be forthcoming prior to March of next year.

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