Cyber attacks: The risk you can’t ignore

The Insurance Act 2016, new sentencing guidelines for Health & Safety Offence, and Motor and Liability fraud are just a few of the issues business owners are faced with in 2016.

By Simon Whittaker, senior account executive, Sagar Insurances

However, as this is not seen as a tangible risk such as property damage or vehicle damage it is very often overlooked.

Nothing could be further from the truth. Consider the following:

• Cyber-related losses are now considered the largest recorded offence in the UK, overtaking physical crime. Data is now more valuable to criminals than physical assets.
• Cyber losses cost the UK economy £27bn per year.
• The average cost of a cyber breach for a small business is between £75,000 and £310,000.

• What data do you hold?
• Are you aware what the full cost of a breach may be and do you have access to experts that could assist?
• Reputational risk: news of a leak spreads fast, especially in the age of social media
• How would your business continue trading without your IT systems?
• Are you aware of what your existing insurance covers and what the potential overlaps are?