Time To Check Your Cyber Cover?
A topic that clearly is not going to go away, so here we highlight a couple of salient items below might help you answer this question.
General Data Protection Regulation (GDPR)
We know this new data protection regulation coming into force next year was due to be covered in detail during the MLS Regulatory Conference on 14th June. Therefore, we do not propose to reiterate the detail here, rather we’d simply mention the potential for significant fines to be levied, particularly so for serious cases of non-compliance when the maximum fine could reach €20m or 4% of global turnover.
All firms must focus on the subject and, even with Brexit looming, the Data Protection Officer role is likely to become a permanent part of the future business landscape.
A comprehensive cyber insurance policy will form an essential piece of your risk management jigsaw ensuring cover includes Regulatory Defence and Penalty Costs cover where permissible by law along with Data Breach Notification Costs.
WannaCry, a ransomware program that targets a vulnerability in outdated versions of Microsoft Windows, has spread across 150 countries and infected more than 230,000 computers since it was launched on 12th May, including c70,000 devices at NHS hospitals in England and Scotland.
The danger that the ransomware program poses is based partially on how invasive it is. After infecting just one computer, WannaCry can spread to every device in a network within seconds. It works by locking users out of their computers before demanding an initial £230 to regain control of their data. This figure doubles after 7 days and, if no payment is made within that time, the ransomware program then threatens to delete the files after another 7 days.
Ransomware is one of the most common cyber attacks, causing business disruptions, partial or total loss of data, and loss of reputation. To ensure that your organisation is adequately protected from such a cyber attack, consider implementing the following practices:
- Update your network security.
- Install and update anti-virus as well as anti-malware software on all of your organisation’s computers.
- Provide your employees with cybersecurity training. This should include best practices, such as how to recognise a cyber attack.
Again, we would stress that one vital component of a solid cyber defence is purchasing comprehensive cyber insurance to ensure that your organisation can sustain a cyber attack. MFL Professional are able to offer a suitable cover inclusive of a 5% premium discount to MLS members.
And Finally…PI Insurance
The soft market continues with additional new Insurer entrants to the market in time for 1st October renewal. Please consider MFL Professional for a review of your arrangements to include
the afore-mentioned comprehensive Cyber cover.