AS WELL AS TAKING OUT CYBER INSURANCE , IT IS ALSO IMPORTANT

TO TRAIN YOUR EMPLOYEES ON HOW TO IDENTIFY AND

PROTECT AGAINST THESE CYBERTHREATS .

Cyber insurance

It is often assumed that cyberattacks are only targeted at larger companies , however 96 % of attacks on UK businesses are directed towards SMEs . Despite this , just four in ten ( 40 %) small businesses have cyber insurance .

Cyber insurance is a type of commercial insurance designed to protect businesses from the financial effects of Internet-based risks like data breaches or malicious cyber hacks . The pandemic drove many businesses online , putting the data of more enterprises at risk .

James Andrews , Personal Finance Editor at money . co . uk business insurance , said : “ There are two types of cyber insurance : first party insurance protects your company ’ s own assets , paying out for direct and indirect costs accrued by business downtime and reputational damage . Third party insurance protects the assets of your customers and covers the costs you are liable to pay should their data be attacked or stolen .

“ As well as taking out cyber insurance , it is also important to train your employees on how to identify and protect against these cyberthreats . Only use software that is GDPR compliant and has vigorous security measures , and always make sure your antivirus software is up-to-date .”

Business contents insurance

Business contents insurance is a type of commercial insurance that protects any items held on your company ’ s premises – but not anything held elsewhere . Furniture , office and manufacturing equipment , as well as staff and client belongings left on the premises , are all protected from theft , fire and flood damage .

Depending on the type of cover , business contents insurance may also cover your stock , however it is important to check the terms of your contract in order to confirm this .

Andrews said : “ Many people , especially in the early stages of running a business , choose to operate their company from home , with 42 % of business owners stating this is the reason they do not have business insurance . However , regardless of where you run your company from , commercial insurance is an important safety net .

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