Industry experts say the impending changes to data protection rules in 2018 are driving a boom in demand for cyber insurance.
A survey of more than 200 people at the 2017 Cyber Symposium from the insurance industry found that 80% of them believed the General Data Protection Regulation had caused a greater demand for cyber policies.
One of the key reasons is a rule being brought in by GDPR in May is that businesses must inform victims of a breach within 72 hours of finding out about it. The days of companies sitting on information that data has fallen into the wrong hands for months, or years, will be over on May 25.
That means businesses in South Wales and the South West will need specialist help from online experts to identify which data has been the subject of a breach, and to assess the potential impact of it.
Without access to this specialist help, businesses could fall foul of the 72-hour deadline and find themselves faced with substantial fines.
Under GDPR, the maximum fines for serious breaches is up to 4% of worldwide turnover – compared with £500,000 under the current Data Protection Act.
How is this encouraging people to take out cyber insurance?
Many cyber insurance policies contain access to these specialists, such as computer forensics experts, as part of the package.
The benefits of this insurance can also include:
- Covering the cost of notifying data breach victims – this could include the cost of a call centre to inform them and take them through the steps being taken to minimise any damage.
- The cost of monitoring a victim for a year can also be included – a breach can make them vulnerable to identity theft.
- Covering the cost of damages for privacy and security of victims.
- Covering any interruption to your business while new security systems are put in place.
- Covering damage to systems or websites from hacking.
- A consultant to examine the systems and report on advice to make them more secure in the future.
Some providers will also help South Wales and South West businesses create plans to respond to incidents before any cyber attack takes place, helping to reduce the risks.
How do you find the right cyber insurance policy for your business?
Don’t rush out and buy the first policy you see advertised online, even though the GDPR deadline is looming.
Instead, talk to an independent insurance broker in South Wales with access to the whole of the market.
They will be able to source products which will be the best fit for your business and arrange your cover quickly.
Severn Bay Corporate Solutions Managing Director Nigel Adams said: “The key thing is to give your broker as much information as possible about how your business works.
“They will need to know about your hardware and software systems, which staff have access to the different parts of your systems, who provides your email and website hosting and where they are hosted, and who updates your website.
“Armed with that information, they can look for the correct cover.”
It’s worth thinking about cyber insurance now, as having a plan for cyber security and dealing with breaches will be an important way of reducing any action the regulator may take against a business.
Need advice on the right cyber insurance for your business? Call our expert brokers on 02920 470375.