11 March 2021

Are you concerned about cybercrime?

Understanding exactly what cybercrime is, the different types, and how to protect yourself from it, will help put your mind at rest.

What is cybercrime?

Cybercrime is criminal activity that either targets or uses a computer, a computer network or a networked device.

Most, but not all, cybercrime is committed by cybercriminals or hackers who want to make money. Cybercrime is carried out by individuals or organizations.

Some cybercriminals are organized, use advanced techniques and are highly technically skilled. Others are novice hackers.

Rarely, cybercrime aims to damage computers for reasons other than profit. These could be political or personal.

According to the latest Government Cyber Security Breaches Survey almost 46% of businesses reported having a cyber security breach during 2020.

It is clear that the extent of cyber security threats has not diminished, although organisations are becoming more resilient to breaches and attacks over time.

However, breaches that do result in negative outcomes still incur substantial costs. Among the 46% of businesses that identify breaches or attacks, one in five (19%) have experienced a material outcome, losing money or data and a further two in five ( 39%) were negatively impacted, for example requiring new measures, having staff time diverted, or causing wider business disruption.

Where businesses have faced breaches with material outcomes, the average (mean) cost of all the cyber security breaches these businesses have experienced in the past 12 months is estimated to be £3,230.

If you trade online and sell over the internet, can you really afford to ignore these statistics?

Claim examples

Please see below a couple of claims examples to help illustrate the need for Cyber Liability cover

Trade:                                                   Retailer
Turnover:                                            £ 3M

Description of the loss:
Third party payment provider suffered a breach affecting 5,000 of the insured customer records

Response Cost                                  £9633.94

Legal Costs                                       £6476.20

Notification                                       £3238.30

PR/ Communication                        £12082.10

ID Monitoring                                    £3750.00

PCI                                                     £16191.50

Total Claim Costs                             £51372.44

Trade:                                                   Marketing Agency
Turnover                                             £5M

Description of the loss:

Back-up tape was collected by the wrong courier. The back-up tape held the details of 3.2M members.

Response Costs                              £12694.10

Legal Costs                                     £21761.38

Notification                                    £20725.12

PR/Communication                        £13673.40

ID Monitoring                                  £35862.75

Total Claims Cost                             £104716.79

For free help and guidance on your cyber insurance requirements, please call R K Henshall today on 01270 758070 or contact us.

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R K Henshall & Co Ltd are Independent Intermediaries and are authorised and regulated by the Financial Conduct Authority. Registration Number: 308865. Directors: J.R. Henshall B.A.(Hons) ACII Cert CII (FS), A.J.Simpson ACII, A.Brown FCCA. Written quotations, policy terms, conditions and exclusions are available on request.
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