We are now in an era where technology is essential for many businesses. The advancement in technology has seen an increase in cyber-attacks, resulting in a detrimental effect for companies.
In a recent report, the Insurance Times confirms that 60% of UK SMBs have experienced a breach in their online security, with the average costing around £75,000. The report continues to outline the yearly cost of global cyber-attacks, which is an astonishing £200 billion.
With the on-going threat of hacking and viruses, businesses may be lumbered with high costs for law suits and loss of profit, amongst other elements.
Currently, only two per cent of the UK businesses have cyber insurance in place, giving a strong case for compulsory insurance.
If we compare ourselves to the US, 46 out of 50 states have made cyber security insurance compulsory, according to Computer Weekly. With the EU referendum approaching, EU’s drafted reform for UK’s cyber insurance requirement is currently on the back seat.
If a business wanted to acquire cover, it would provide them with a safety net for loss of income, hacker damage, loss of third party data, extortion costs and business interruption compensation.
With businesses investing more into technology, cyber insurance can be a solution to potential future threats.