Business

Tech-sector advancements can mean more risk for your business

Technology advances can lead to an increased risk of cyber attack for firms
Technology advances can lead to an increased risk of cyber attack for firms Technology advances can lead to an increased risk of cyber attack for firms

TODAY'S business world is almost unrecognisable compared to a decade ago with a huge factor being the advancement of technology and the impact that it has had on business operations. Many organisations rely on technology and it is becoming increasingly important for businesses and customers.

The development of technology has affected almost every industry in some capacity, with the insurance industry proving to be no exception. In fact, our Personal Lines Team are currently finalising plans to attend the upcoming ICONS Festival at the Titanic Exhibition Centre in Belfast, where they will be launching the new version of our young-driver product, which is based on telematics technology available to download on a smart-phone application.

The ICONS Festival will include a technology conference and is focused on the growing industries of technology, music and screen. With over 100 exhibitors from across the tech sector, it is quite clear that the technology industry is already flourishing here in Northern Ireland.

With the phenomenal growth in the importance of technology, it also brings with it an added risk for businesses and it is imperative to consider how your organisation can protect itself from cyber exposures.

Technology risk management can provide strategic business value, while a Cyber Liability Insurance policy provides further reassurance that your business is protected. The value of a strong Cyber Liability Insurance policy will only continue to grow with future developments. The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential exposures facing businesses.

Regulations, such as the Data Protection Act, must also be considered, because a loss of sensitive personal information may subject you to fines and sanctions from the Information Commissioner. In an age where a stolen laptop or hacked account can instantly compromise the personal data of thousands of customers, protecting yourself from cyber liabilities is just as important as some of the more traditional exposures businesses account for in their general commercial liability policies.

A traditional commercial insurance policy is extremely unlikely to protect against most cyber exposures. Standard commercial policies are written to insure against injury or physical loss and will do little, if anything, to shield you from electronic damages and the associated costs they may incur. Exposures are vast, ranging from the content you put on your website to stored customer data. Awareness of the potential cyber exposures your company faces is essential to managing risk through proper cover.

Possible exposures covered by a typical cyber policy may include:

Data breaches – increased online consumer spending has placed more responsibility on companies to protect clients’ personal information.

Business/Network Interruption – if your primary business operations require the use of computer systems, a disaster that cripples your ability to transmit data could cause you or a third party that depends on your services, to lose potential revenue. From a server failure to a data breach, such an incident can affect your day-to-day operations. Time and resources that normally would have gone elsewhere will need to be directed towards the problem which could result in further losses. This is especially important as denial of service attacks by hackers have been on the rise. Such attacks block access to certain websites by either rerouting traffic to a different site or overloading an organisation’s server.

Intellectual property rights – your company’s online presence, whether it be through a corporate website, blogs or social media, opens you up to some of the same exposures faced by publishers. This can include libel, copyright or trademark infringement and defamation, among other things.

Cyber Liability Insurance is specifically designed to address the risks that come with using modern technology; risks that other types of business liability cover simply won’t. The level of cover your business needs is based on your individual operations and can vary depending on your range of exposure. It is extremely important to work with a broker that can identify your areas of risk so a policy can be tailored to fit your unique situation.

:: John Kielty is commercial insurance director at Autoline Insurance Group (www.autoline.co.uk).