Attacks by hackers on companies including Talk Talk and the Ashley Madison adultery website create panic around the world.
Yet most businesses are failing to insure against the risk of cyber crime with many unaware of the availability of cyber liability insurance, commercial insurance expert James Miller has warned.
Computer experts continue to warn about a rising tide of online security threats with the UK’s intelligence chiefs at GCHQ classifying cyber security breaches as a Tier One threat alongside terrorism and natural disasters.
In the US, the FBI reported in June 2015, that 1,000 victims have reported Cryptowall infections with estimated losses of $18 million.
“According to the latest Government research, the average cost of the most severe online security breaches for big business now starts at £1.46 million – up from £600,000 in 2014,” said James of Miller Commercial Brokers Ltd based in Alton, Staffordshire.
“For small and medium sized businesses (SMEs), the most severe breaches cost can now reach as high as £310,800, up from £115,000 in 2014.
“Despite this, cyber liability insurance is little known even among computer security professionals.”
“Threats have included the malicious Heartbleed bug and the Blackshades Rat which allowed attackers to access victims’ files, copy keystrokes, and operate webcams. There has also been much recent publicity about cyber attack on Carphone Warehouse in which up to 2.4 million people may have had their personal details accessed.”
Cyber liability insurance cover (CLIC) protects against the high profile cyber fraud incidents and more general data loss through human error and system interruptions.
“In the case of serious crime such as cyber extortion, cover can protect against ransom payments but businesses should also think about protecting their business against data loss through human error, system malfunctions and natural disasters such as flooding,” advised James.
“Most companies are aware of the importance of business continuity planning and as a commercial risk broker I would recommend cyber liability insurance should be part of a company’s emergency plan.”
For further information on cyber liability insurance, contact James at Miller Commercial Brokers Ltd on 01538 702161, email email@example.com.
For media enquiries contact Nigel Howle by phone on 07762043436 or firstname.lastname@example.org
Notes to Editors:
Miller Commercial Insurance is based in the heart of the Staffordshire Moorlands, with deep roots and knowledge of the local area.
James Miller founded Miller Commercial in 2013 in his home village of Alton. James has more than 15 years of experience in the insurance industry, specialising in commercial insurance.