Cyber Liability Claims

Cyber Attack

When you think about cyber attacks, you probably think about the big data breaches. Snapchat. Equifax. The NHS. They might make the headlines, but in reality cyber criminals are targeting small and medium-sized businesses at a rapid clip.

Why? Smaller businesses are seen as easier targets, but they’re also often used as stepping stones to the larger organisations they invariably work with.

In 2017 you’d be hard-pressed to find a UK business that doesn’t use computers and online services to some degree. It’s simply how the modern world functions. But doing so opens users up to an array of cyber risks through emails, websites, social media, online banking and numerous other channels.

Whether it’s a fraudulent email, a phony website, or a sophisticated piece of ransomware, we’re all vulnerable. Without proper care, attention, and cover a cyber incident can wreak havoc, leading to the theft of money, data, or goods, as well as potential business interruption and significant reputational damage to you, your company, or the company you’re contracting for.

Cyber crime costs UK businesses £20 billion a year, with 52% of small firms and 66% of medium-sized firms falling victim to at least one cyber breach in the last 12 months.

Having the right insurance in place in the event of a cyber attack can be the difference between getting back on your feet quickly and never recovering. We often hear that our customers believe they’ll never have to make a claim. In all honesty, we hope you don’t have to. But it happens. Read on below for a selection of claims examples.

Example One

A contractor working in the accounts department of a well-known company receives what he believes to be a genuine email from a longstanding customer. The customer asks if a payment can be made to them that day because of a ‘short-term cashflow problem’. The email includes a bank account number and sort code for the payment to be made to.

The contractor makes the payment without double checking any details. The payment actually went directly to a scammer.

Example Two

A contractor had recently taken on a role at a large construction firm. She received an email that appeared to come from a big-paying client proposing a large job. She innocently clicked a link in that email, only to find that her computer and the company’s entire computer network were instantly locked down.

A message appeared demanding a ransom payment of £10,000 in order to restore the systems to normal.

Example Three

A contractor worked as a book-keeper for a small IT firm. Upon checking, he’s surprised to see a number of unaccounted-for payments going out of the company bank account. It transpired that he had unwittingly clicked a link in an email a couple of weeks previously that led to a piece of ‘keylogging’ malware being downloaded onto his PC.

Since that malware had been downloaded, cyber criminals had been able to record every key he pressed on his keyboard, meaning they had access to all of the contractor’s passwords, the company’s customer data, and their bank account login details.

Are you worried that you’ll become a victim of a cyber attack? If you’re thinking of purchasing insurance with Kingsbridge, or if you’re due to renew your policy soon, then why not add on our Cyber Liability cover? Learn more here, or give us a call on 01242 808740.

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