Posted: 27th October 2015
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Cyber-crime threat to businesses
Businesses who ignore the ever-increasing risks of cyber-crime may be putting their entire future in jeopardy.
That’s the warning from Jenny Osborne, of Henshalls Insurance Brokers in Newport and Shrewsbury, who said the risks were growing by the day.
“It’s not only e-commerce companies and businesses who sell products over the internet who are being targeted – any company that collects and stores personal and corporate data, or that relies on computer and telephone networks could fall victim to the crime.”
Jenny said as a direct result of the growing risks, many companies were turning to cyber-crime insurance cover to protect their day-to-day operation.
“Research has shown that this year, for the first time ever, the risk of cyber-crime is now in the top ten most critical considerations for any business.
“If your computer system is infected with a virus, or sensitive data is breached, your company could face huge financial losses; its reputation could be damaged; and disruption or even a total shutdown of your business could be the result.
“And just because you’ve spent a vast amount on IT security, you can’t assume you’re not at risk, as no system is ever 100 per cent secure.”
Jenny said cyber insurance cover had not previously been considered a priority by the majority of firms, and it had developed a reputation for being complicated and difficult to understand.
“But now, more and more companies are realising just how vulnerable they are, and the policies now available are much more user-friendly. In fact, the information you need to provide is usually limited to a simple proposal form, although in more complex situations, you may need to provide additional details by telephone.
“Cyber cover is not only a reasonably new form of insurance, but it also deals with an industry that is constantly changing, so it’s vital that if you do have a policy, you update it regularly.
“Computer networks are at the heart of almost all companies, and if you’re not protecting your system well enough, you’re risking the very future of your business.”