The internet symbolises today’s modern business world. It is not a tangible entity, but invades our everyday lives in a very real sense. We cannot avoid it. So much of contemporary commerce is based around the world wide web, in fact as far back as 2012 the BBC declared that the “UK is the most internet-based major economy.”
Globally, the internet based economy increases daily and recent events in the UK have proved that the growth of the internet is damaging the offline retail market. So what does this mean for your business? Opportunity. Opportunity brings exposure as you and your team delve into new unexplored markets via those unique, dynamic and rich interconnections that define the internet.
What are Cyber Liability risks?
Cyber risks are losses and liabilities that a company faces as a result of using the internet, computer systems and email. The last 25 years have seen colossal changes in the way that information technology affects our lives. Faster and cheaper computers have resulted in millions of new users every year with access to the internet now common place at home and at work. It has never been easier to trade online and as consumer confidence in e-trade grows, online trading is only likely to increase. Companies providing ‘shopping cart’ facilities and retaining credit card information on internal systems has experienced incredible growth. Email and electronic newsletter are now used in abundance as a means of communication with customer’s suppliers and employees.
These advances in technology bring a whole new set of risks to be managed, risks which traditional insurers generally exclude from their policies. Examples include:
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- Liability to a third party due to libel contained in an e-mail
- Liability to a third party due to a virus transmitted by you
- Liability to members of your staff due to them being exposed to sexual harassment via electronic systems i.e. pornographic images unintentionally viewed on a colleague’s PC
- Damage to your computer network due to harmful virus or hacker
- Loss of revenue due to downtime of a computer system caused by a virus or hacker
- Theft of your money (or your clients) due to hacking or employee electronic theft
- Threat or extortion relating to your computer system
- Not meeting GDPR regulations; penalties, investigation costs, notification costs
- Adverse publicity leading to reputational damage
Typically, some or more of these risks resonate with the majority of our clients, so they may be relevant to you. We have extensive experience in managing the pitfalls and hazards with efficient and appropriate protection strategies.
If you think our risk reduction services could help you, please don’t hesitate to contact us online or by calling 020 7371 2812 to discuss because well-managed risks increase opportunity to profit.
Some examples of claims are:
- Norwich Union paid Western Provident £450,000 in order to settle an action that an email at Norwich Union incorrectly alleged that Western Provident was about to be investigated by the Department of Trade and Industry.
- British Gas were forced to pay over £200,000 to an ex-employee arising from comments circulated via the internet that breached his privacy.
- Citibank lost £6.25m to a hacker using an old computer in an accountancy office in St Petersburg. He was arrested in the UK and extradited to the US where he is now serving a prison sentence. The FBI has still not recovered £250,000 of the funds.
- A computer engineer who had been employed to update the computer system of a sheet metal company was fired due to incompetence. When the company refused to pay him, he hacked into its computer system and deleted their files. It cost the company over £70,000 to rectify the damage.
If you would like to find out more about how our risk reduction services could help you, don’t hesitate to schedule a conversation or call us on 020 7371 2812.
Use our checklist below to see if you are exposed to Cyber or GDPR Risks
| Question | Answer Yes/No | Major Exposures |
|---|---|---|
| Do you have a website? | Yes/No | — Breach of intellectual property rights — Libel & slander — Misleading advertising/pricing |
| Do you hold HR/payroll data on your network? | Yes/No | — Breach of employees’ privacy rights |
| Do you allow staff to use email and the internet? | Yes/No | — Libel & slander — Damage to your systems due to a virus or hacking attack — Damage to third parties systems by you forwarding a virus — Employees creating or sending a virus to your business contacts — Employees hacking activities — Employee claims for an inappropriate workplace — Malware or Ransomware — Breach of Data Protection Act & GDPR |
| Do you allow suppliers to access your network? | Yes/No | — Damage to your computer systems due to a virus or hacking attack — Consequential loss to your business due to downtime |
| Do you operate a bulletin board, discussion forum or chat room? | Yes/No | — Libel & slander — Breach of intellectual property rights or confidentiality |
| Do you have sensitive data accessible through your web server? | Yes/No | — Libel & slander — Breach of intellectual property rights or confidentiality — Breach of Data Protection Act & GDPR |
| Do you transact business via your website or rely heavily on email? | Yes/No | — Damage to your systems due to a virus or hacking attack — Your lost revenue due to a virus or hacking attack — Breaches of statutory duties regarding the advertising or sale of goods or services by e-commerce |
| Do you hold/obtain customers’ personal details on your network? | Yes/No | — Breach of Data Protection Act & GDPR — Third parties financial loss due to dishonesty of your Employees |
