As a business, you are likely to rely on information technology (IT) infrastructure to some degree.
As a result you are also likely to be exposed to a range of risks if your IT equipment or systems fail or are breached: business interruption, income loss, damage management and repair, and possibly reputational damage too.
If your company’s IT security is found to be inadequate and a breach occurs, the penalties can be high.
Under GDPR regulations, which came into force in May 2018, you are required to notify your customers of a cybersecurity breach and could be fined up to 4% of your turnover if found to be at fault.*
In addition to these potentially substantial fines, a data breach can also lead to a damaged reputation, legal costs and associated business disruption and lost revenue.
Will your customers trust you after a cyber security breach?
Cyber liability insurance can cover the losses relating to damage to, or loss of, information from IT systems and networks. The policies we arrange also assist with the management of the incident itself, which can be essential when faced with reputational damage or regulatory enforcement.
While existing insurance policies such as commercial property, business interruption or professional indemnity insurance, may provide some elements of cover against cyber risks, businesses are increasingly buying specialised cyber insurance policies to supplement their existing insurance arrangements.
Managing agents in particular, are likely to hold a lot of personal and sensitive data concerning their customers. The increasing use of online portals could give hackers access to sensitive information held about individual customer accounts.
*There is more information about your responsibility for personal and sensitive data at the Information Commissioner’s Office.
Find out more about the cyber liability insurance provided through Deacon here.
The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Deacon accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.