Public liability, professional indemnity and employers liability are no longer adequate when it comes to protecting your company or business. But there are certain covers available that could secure your company further, according to a blog post published by Revolut.
The leading digital banking platform has teamed up with Superscript in order to provide flexible, “customizable” business insurance that can keep up with “modern-day risks.”
Nearly every business now depends on the Internet, and has a lot to lose if their IT systems go down or critical data is lost — but still, 82% of these companies do not have cyber insurance, Revolut revealed. The banking challenger noted that a “widely misjudged perception of the risk may be in part to blame.” Revolut’s blog post pointed out that “worryingly, a survey conducted by Gallagher found that over 80% of small businesses didn’t believe they were at risk of being targeted by a cyber attack.”
In reality, however, cyberattacks are underway “all the time” and may potentially have “devastating consequences for any business,” the digital bank noted. Estimations have revealed that the United Kingdom’s small businesses are “collectively subject to almost 10,000 cyber attacks each day.”
While the cybersecurity industry continues to expand, there’s plenty of software currently available to help users protect their financial data and IT systems. However, the Revolut team claims that it’s “impossible to be 100% safe.” They added that “what’s more, with the Internet of Things (IoT) devices becoming increasingly prevalent – expected to increase from 31 billion in 2020 to 75 billion in 2025 – it’s hard to keep track of and protect against potential security flaws.” They also mentioned that “to add to this, 95% of cybersecurity breaches are due to human error.”
Revolut’s blog further noted:
“So, while businesses invest in technologies, and most IT teams plan to spend more on cybersecurity measures, insurance is often an oversight. But the impact of a cyber attack and subsequent data breach can be far-reaching. From losing the ability to operate to reputational damage and regulatory penalties, cyber attacks can be brutal for even the most well-resourced businesses to recover from.”
A cyberattack can be described as an Internet-based attack carried out via computers against other PCs or networks. They are performed so that computer systems are disabled, or they may be carried out to steal data, and/or gain access to other computers or networks.
The main goals of these cyberattacks are “usually financially motivated, although sometimes it may be motivated by espionage,” the blog from Revolut explained. It pointed out that the methods used to conduct cyberattacks can vary greatly, and include: denial-of-services (DoS) attacks, malware, phishing, and ransomware.
The Revolut team also mentioned:
“Hackers may use a combination of … techniques to maximize the attack’s efficiency. One thing that isn’t well understood is that hackers also use people to get the job done. By manipulating you or your employees, hackers can get inside your network and wreak havoc. Social engineering — where a hacker manipulates an employee by posing as another colleague (usually someone senior) to steal either money or data — is one of the leading causes of successful cyber attack insurance claims.”
Although larger companies are quite likely to have cybersecurity professionals on their teams, who are responsible for regularly monitoring and addressing problems, smaller firms are less likely to have adequate resources to perform these checks.
Revolut’s blog post questions or asks what businesses would do if they fall victim to a cyber attack and can’t operate their IT systems or website. Revolut claims that cyber insurance can offer “specialist technical support to help you quickly get things up and running.”
The digital bank added:
“Understanding what constitutes a GDPR violation has been a challenge for businesses of all sizes. However, not all GDPR penalties and fines are quite as costly as the reported €20 million fine.”
Revolut also noted that cyber breaches are “one of the biggest concerns for consumers.” A survey by F-Secure revealed that US consumers “consider cyber-crime related fears on par to their car getting damaged in an accident.”
The digital bank also mentioned that even for firms that are able to make it through the technical setbacks resulting from cyberattacks, the “human side of things has its own challenges.”
“Cyber breaches involving personal data require communicating to those affected. While there’s no way to control how your customers react to this news, tried and tested communications strategies are most likely to achieve the best possible outcome. Cyber insurance can provide the specialist PR and communications support necessary.”
Revolut notes that if you’re still not sure about the real value of cyber insurance, then you may want to check out Superscript’s reasons for considering these packages.
Revolut also mentioned:
“D&O insurance (short for directors and officers insurance, sometimes referred to as management liability insurance) is an often forgotten cover. If you’re a sole trader, it’s not one to worry about, but it serves an essential purpose for all other business types. Business decisions made by those in management positions may leave them personally liable for some pretty significant risks.”
D&O cover offers three main covers:
- Directors’ fines, penalties and legal expenses
- For the company, if it “needs to pay on behalf of the directors”
- Company fines, penalties and legal expenses “if the company itself is pulled into the lawsuit”
Revolut also noted that if you’re looking for investment, “bear in mind that investors typically require this cover before parting with money.” D&O insurance also has “an essential add-on called Employment Practices Liability (EPL), which covers the company for any matters relating to your employees.”
This cover protects you “against allegations regarding discrimination or harassment.” This important add-on is “widely used by employers ranging from technology to manufacturing and financial services.” If you have employees, it would be “wise to have EPL — it might just save you from a costly lawsuit,” Revolut’s blog recommends.
Superscript offers flexible, “customizable” cover by monthly subscription for more than a 1,000 business types. Revolut Business clients may receive 20% off cover with Superscript (certain terms and conditions apply).
Note: for more details on this offer, check here.