You will already be aware of attempted scams to get your money, mainly perpetrated through unknown persons sending you texts, emails or phone calls looking for your personal data and ultimately your bank account and credit card details. These criminals are spending even more time and effort looking at how to attack your business! Cyberattacks, data breaches, and other cyber threats are becoming increasingly common and sophisticated. Businesses of all sizes are vulnerable, and a single cyber incident can lead to significant financial loss, reputational damage, and legal liabilities for your business.
According to the Cyber Crime Report from Microsoft Ireland 2023 survey, 46% of Irish business respondents have experienced one or more cyber incidents in the last three years, and 30% have experienced a data breach. Microsoft have found that 20% of respondents in Ireland admitted that they have suffered a financial loss due to a cyber incident.
You may be curious as to how vulnerable your business is to a cyber-attack?
Here are some questions to help you to identify your level of risk.
- Do you send or receive wire transfer payments?
- Do you collect or store personally identifiable information?
- Do you store business critical information on your computer systems? Contracts, plans, stock levels etc.
- How long can your business operate without access to computer systems?
- Do any of your employees work remotely?
Most cyber-attacks never make the news, whilst a small few dominate the headlines for days. In May 2021 cyber criminals attacked the HSE IT system and caused chaos that lasted for months as tens of thousands of medical procedures had to be postponed; all in the middle of a Covid crisis.
More recently in August 2024, Fota Wildlife Park in Cork was hit by a cyberattack and customers were warned that their financial information may have been compromised.
When the stakes are so high, it is inconceivable that businesses would not seek to protect themselves against such losses. In 2022 LHK commissioned Market Dynamics to carry out a survey on its behalf. This survey staggeringly concluded that only 18% of Irish businesses had adequate Cyber Insurance cover in place. Colm Kelleher, Managing Director of LHK Group, said in response to these findings “This research is a big wake up call to all of us in business. Standard commercial policies typically do not provide cyber liability cover and many business owners don’t realise this. This survey shows that we must act immediately”.
An investment in Cyber insurance will safeguard your data, your finances and very importantly your businesses reputation.
So, what does Cyber Insurance cover?
Financial Protection: Cyber insurance provides financial protection in the event of a cyber incident. It can cover costs such as data recovery, legal fees, notification costs, and regulatory fines.
Third-Party Liabilities: If a cyber incident affects your customers, clients, or partners, you could be held liable for damages. Cyber insurance can help cover the costs of legal claims and settlements related to third-party liabilities.
Regulatory Compliance: There are regulations in place in Ireland mandating data protection and breach reporting. Cyber insurance can help you comply with these regulations and can cover many of the costs associated with a breach.
Reputational Management: A cyber incident can severely damage your business’s reputation. Cyber insurance often includes cover for public relations and communication expenses to help manage your reputation in the aftermath of an incident.
Business Interruption: Cyberattacks can lead to business disruptions, downtime, and loss of income. Cyber insurance can provide cover for income loss during the recovery period.
Contractual Requirements: If you work with partners, suppliers, or clients, they may require you to have cyber insurance as part of your business relationship. Some may not let you quote them unless you have cyber cover in place. Having cyber insurance can help you meet these requirements and maintain important business relationships.
Risk Management: The process of obtaining cyber insurance often involves a risk assessment of your business’s cybersecurity practices. The decision to purchase cyber insurance should be based on a thorough evaluation of the risks and individual requirements of your business. LHK are always available to help and advise you with this process.
It’s important to note that cyber insurance is just one component of a comprehensive cybersecurity strategy. Businesses should also invest in robust cybersecurity measures, employee training, incident response plans, and regular assessments to minimise the risk of cyber incidents. The decision to purchase cyber insurance should be based on a thorough evaluation of your business’s risks and individual requirements.
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