As larger and larger chunks of the UK economy go digital, many businesses are starting to get wise to the need for cyber liability insurance. With the biggest ecommerce economy in the entire world, UK businesses that operate online in any capacity need to start taking the precautions necessary to protect their livelihoods from the fall-out following cyber-attacks.
Many of us could be criticised for being somewhat naïve about the all-too-real risks present on the web. With a conservative 7% of our economy now online, it is more important than ever to start thinking seriously about whether your business can risk not looking into cyber liability insurance.
Groups of hackers like Anonymous have drawn attention to just how vulnerable information is when it is stored online and just how much havoc can be wreaked in the course of a cyber-attack. In 2010, following the WikiLeaks controversy, the ad-hoc group of ‘internet vigilantes’ hacked sites including Mastercard after they ceased allowing donations to Julian Assange’s controversial site.
Of course, not all illegal online activity of this nature is performed with ‘freedom of speech’ or grand moral principles in mind. Often, plain old greed is the motivation for cyber-crime. With millions of users’ details in online systems, a successful online criminal could stand to make significant profits from this information.
Cyber liability insurance is designed to protect against 1st and 3rd party risks which e-businesses are vulnerable to. This relatively fledgling form of insurance will protect you and your business against issues like:
- Intellectual property infringement
- Issues surrounding infringement of privacy
- The transmission of viruses
- & other issues that could be transmitted from 1st to 3rd parties online
Areas like intellectual property infringement might sound like the sort of area covered by professional indemnity insurance, whilst virus transmission could well be fitted into a public liability insurance policy. However, as of yet, traditional forms of insurance do not offer cover for the huge raft of possible risks that exist on the web.
As consumer awareness and hacking techniques develop and grow, there is only going to be more call for Constructaquote liability insurance that protects businesses that have an online component.
For 21st Century businesses this is simply not something you can ignore and is something any company with a website, internal or external email needs to start thinking about.
Written by Ceri Harris.