Our Professional Indemnity Insurer’s preferred broker Arlington have sent me some helpful information as follows:
The threat of being exposed to cyber-crime or a data security issue is an acknowledged risk to all sizes of businesses. Many Cyber security experts state it’s not if a cyber-crime will happen to a company; it is a case of when. There are many implications of a cyber-attack, including:
- Financial costs of your own, or from third parties, in dealing with lost data
- Legal and Regulatory implications for breach notifications (GDPR consequences for any firms falling victim to a data breach.)
- Damage to tangible and intangible assets
- Loss of reputation and clients, in the event of a security breach
If you think your accountancy practice is unlikely to be targeted (perhaps you think you’re not big enough to be of interest), you should consider that hackers will often look for a weak link in the chain to access their ultimate target, which could be one of your most important clients. All practices, regardless of size, should therefore consider their potential risks to ransomware, electronic crime, damage to systems, data privacy and virus transmission.
Your clients will expect that any firm which suffers a data breach will act quickly and inform them of truthful facts, so it is crucial you are prepared for the steps you need to take should a data breach occur. Valuable data lost to cyber-crime won’t necessarily be covered under standard business/office insurance policies, nor will the costs associated with cleaning up afterwards – such as hiring forensic specialists to find out what went wrong or the cost of notifying affected customers or any resultant legal fees.
While risk management will help to prevent a cyber-attack, even the best security does not always prevent an intrusion. In the event that an incident does occur, Cyber insurance provides a valuable safety net. Arlington, the SPA’s PII broker, has access to a range of Cyber Liability insurance products that can help protect your accountancy practice and give you immediate support, guidance and risk mitigation when you need it. For more information on obtaining a Cyber quotation, please call Arlington on 0117 387 8880 or 0117 387 8881.