Cyber attack reports surprise no-one
Reports of a cyber attack on businesses across the world - from SMEs to multi-million pound corporations - surprises no-one in 2014.
Tens of thousands of cyber attacks are launched every day against computers in Britain, costing the country billions of pounds.
With more and more businesses focusing on social media sites such as Twitter and Facebook to enhance their online presence, the possibility of libel also becomes a huge issue.
And yet there are businesses across the UK that have no cyber insurance - and many that are still unaware it even exists.
Ben Lawrence, of Shrewsbury-based chartered insurance brokers Beaumont Lawrence, said as more businesses step up their online activity the need for cyber liability insurance is growing.
“The threat to cyber security is persistent, and continues to evolve, but the market for cyber liability products is in its infancy - despite being available for around 10 years - which is one of the reasons business owners do not think of it as they do public liability or professional indemnity,” he said.
“But more and more businesses every day make the move to being more active online, and they need to make sure their online activities are insured.
“Technology continues to advance extremely quickly and policies are developing all the time. We were appointed to sell cyber insurance more than a year ago and our staff are continually trained to ensure they are up to date as online security breaches and identity theft is an increasing problem.”
Cyber insurance policies were created to provide protection for businesses as the online market for services and products grow. They provide cover against risks such as hacking and virus attacks, technology errors, data breaches and the risk of defamation, privacy breaches and infringement of intellectual property from the use of electronic media.
“But there are businesses out there who face the possibility of all of the problems but have no insurance against them,” added Mr Lawrence.
“Any business which thinks they may need cover should speak to their insurance broker immediately.”