In today’s increasingly digital world will writers can face growing cyber risks that may threaten their business operations and client trust. Storing sensitive client data such as personal details, estate information and financial instructions can put businesses at risk of cybercrime. Additional factors such as remote working, use of third-party systems and electronic payment processes mean the need for robust cyber insurance is now more important than ever.
Why cyber risks matter
As a will writer you often manage clients’ most sensitive information which is commonly stored electronically and accessed remotely. This can increase your vulnerability to cyber threats such as hacking, ransomware and phishing attacks.
Many businesses use third-party case management systems and cloud services, which can introduce further risk should those providers suffer a breach. Payment and transfer instructions are also susceptible to fraud and social engineering scams. A single cyber incident can lead to data loss, business interruption, reputational damage, regulatory penalties and potentially costly legal claims.
How can cyber insurance help?
Cyber insurance may be included in another business insurance policy that you hold, however it generally doesn’t provide the right level of protection. With a standalone cyber policy you will typically be covered for:
- Data breach response: expenses related to notifying those parties affected by a breach and managing their responses.
- Business interruption: compensation for lost income if your operations are disrupted due to system outages.
- Forensic investigation: the costs required to investigate the security breach, determining the cause and securing your systems.
- Legal costs: fees arising for legal expenses and defending claims arising from data breaches or cyber incidents.
Risk management steps to consider
In addition to a cyber insurance policy it is important to take practical steps to protect yourself and your business from cyber risk. Some of the things to consider include:
- Multi-factor authentication (MFA): protect access to systems and email accounts by introducing two or more proofs of identification, for example a password, fingerprint, face recognition or mobile code.
- Secure backups: keep offline, encrypted backups of all critical data, reducing the reliance on cloud based applications.
- Training and CPD: conduct regular phishing awareness and cyber training.
- Payment verification procedures: these are dual control security measures which confirm the legitimacy of a transaction to prevent fraudulent payment instructions.
- Supplier due diligence: assess the cybersecurity of third-party providers and seek guidance or recommendations if unsure.
- Incident response plan: develop and test a clear plan for responding to cyber incidents swiftly.
If you have any questions about cyber insurance or would like to arrange a quote, contact the Marsh Commercial team at 0330 818 7624 or email [email protected].
