I don’t need Cyber Liability cover… or do I?
Ever expanding use of the internet, social media and IT systems in our daily trading result in a significant increase in the potential risks faced by businesses. Although Cyber Liability Insurance Cover has been around for several years, many traditional businesses believe they don’t need it. However, as two UK-based companies recently discovered, all businesses are at some risk of exposure.
In early May, Bettys discovered that its database had been breached and around 122,000 customer details, including name and email addresses, had been copied by cyber criminals. Luckily, customer credit card details are not thought to be stored on the server and are instead held by a certified third party. It wasn’t exactly clear when the breach occurred, but the company blamed an ‘industry-wide software weakness’.
More recently in August, Carphone Warehouse admitted that personal data, including names, addresses, date of birth information and bank details of millions of its customers had been accessed in a ‘sophisticated cyber attack’. The company also admitted that the credit card data of around 90,000 customers may also have been accessed.
Make sure you’re covered
HIBL’s Cyber Liability Policy covers breach costs, which can help to cover the cost of a call centre, website and forensic team. Our policies also include support for credit monitoring the affected customers, while the privacy protection module covers any insurable fines that are levied against the company by the ICO or other regulatory bodies for added peace of mind.
Our policies can also provide cover for cyber business interruption caused by customers being unable to use the website, as well as any business interruption caused by reputational damage. In addition, hacker damage would cover the costs of the IT security specialists to repair, restore or replace the damaged website and, had the website infringed any copyright through images or libel, our media liability will respond to cover these costs too. The cyber extortion module will also cover the company if the website has been taken offline and a ransom demand has been made.
Finally, our crisis containment module comes as standard with all C&D policies and allows access to a specialist PR firm to manage the company’s communications to the public and protect their image and reputation.
Contact your nearest office for more information.
Please note that Bettys and Carphone Warehouse have been used as case studies only, and are not affiliated with the Henderson Insurance Group in any way.