Why your business needs cyber insurance

Working from home has brought a whole new threat to businesses and your insurance cover needs to reflect this, advises Paul Higgins, Director of Corporate at Bridge Insurance Brokers.

Whilst working from home has long been in practice for some businesses, for many this is an entirely new way of operating. 

New tech means new exposures

One element that our team has been advising on is the fact that this new way of working has meant whole industries have suddenly had to use technology in a completely different way – and this leads to new exposures. As well as the HR considerations, security needs to be front of mind, as the criminal fraternity are taking advantage of the situation.

Many businesses have found themselves suddenly looking for software and systems that will enable their full or reduced team to manage output at the right level from a variety of locations. The priority has been to get up and running but it is imperative that this does not leave your company vulnerable. Office systems afford security protection though firewalls and blacklisted IP addresses, and without these, working on looser internet connections, there is a higher chance of cyber attacks.

Covid-19 has shown small to medium businesses that cash flow really is king and for this reason, there has been an increase in the number of emails chasing outstanding funds. The majority of these are legitimate, but cyber criminals are very sophisticated and have really ramped up their social engineering activity. One insurer has reported to us that claims emanating from e-theft have increased by over 40% in the first 6 weeks of lockdown when compared to the 6 weeks prior. Businesses should use multifactor authentication for all new or differing payment details (if request received by email, have it confirmed over the phone).

Rising threat means a re-evaluation in cover

The National Cyber Security Centre has launched a cyber awareness campaign, having removed more than 2,000 online scams including fake online scams, 555 malware distribution sites, 200 pishing sites and 832 advance-free frauds. Interpol’s cybercrime threat response team has reported a ‘significant increase’ in attempted ransomware attacks around the world.

And even with the proper training, human error will always need to be considered. Employees are under increased pressure through lockdown, home-schooling and worry about loved ones.

The risks differ according to the industry in which you are operating but the team at Bridge can advise on what Cyber Solutions are available to ensure your business is able to act fast in the event of a breach – and help you ensure you are able to continue trading with the minimum of disruption and cost at these already testing times.   

For more information, please contact:

Paul Higgins
Director of Corporate
07818 585578
[email protected]

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