IN January’s edition, we highlighted that criminal activity using computers and the internet is a growing threat for all of us. Statistics from different sources show that this is a growing and evolving area of risk and cannot be ignored.
Of particular relevance to business is the annual Information Security Breaches Survey, conducted by PWC on behalf of the Department for Business, Innovation & Skills. We hear about high-profile cases and the 2015 survey shows that 90 per cent of larger corporations have experienced breaches in the last 12 months. However, this is as much a problem for smaller businesses and the survey highlights
* A rise from 60 per cent in 2014 to 74 per cent of smaller companies reporting a security breach in the 2015 survey
* The cost of most serious smaller company breach increased significantly, from £115,000 in 2014 to £311,000 in 2015
* 38 per cent of smaller businesses were attacked by an unauthorised outsider, up from 33 per cent in 2014
* 50 per cent of the worst breaches were caused by inadvertent human error, up from 31 per cent in the 2014 survey.
* 59 per cent of businesses surveyed expect that there will be more security incidents in 2016
A copy of the report is available at www.gov.uk/bis
The Government backed The Ten Steps guidance and Cyber Essentials Scheme and are helping smaller businesses bring focus to what action to take. The survey identified that nearly half of respondents are either already accredited or on their way to accreditation. ISO 27001 remains the leading standard for security management and if not already, could become the minimum expected by customers and others.
However, this will only reduce the risk of loss and cannot remove it entirely. Insurance offers a solution. In response to the needs of smaller businesses, insurers have launched new cyber specific insurance products. Recognising that smaller enterprises are unlikely to have the expertise or resource to handle a cyber breach, most include immediate access to leading IT forensic specialists in the event of a serious breach.
These new cyber insurance policy wordings do differ in certain material ways and existing policies may already provide some protection.
For more information on cyber crime and data loss insurance options or a free review of how well your current insurance policies protect you already, please contact Simon Mitchell, Corporate Account Director at Towergate Insurance on 01604 887325.
Towergate Insurance is a trading name of Towergate Underwriting Group Limited. Registered in England Company No. 04043759, registered address Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent, ME14 3EN. Towergate Underwriting Group Limited are Authorised and Regulated by the Financial Conduct Authority.