Cyber insurance - what is it? Why would I need this cover?

Scrutton Bland provides clear effective advice on all insurance covers and help Charities and not for Profit organisations understand insurance in simple terms.

Cyber Liability insurance cover has been around for over 10 years, but why now is it so important for charities to consider this type of insurance?

The first aspect to consider is that charities are changing with funding restrictions and the need to fulfil objectives within certain timescales. With rapidly changing technology this also increases cyber risk as security measures change with it. Organisations need to be aware and have a system in place to deal with the changes to prevent any breach.

Many charities also hold sensitive client information such as risk assessments, donor information & bank details. Have you stopped to think about the implications if this information got into the wrong hands? The implications are not only financial as the damage to reputation could be significant too.

Cyber Insurance covers the losses relating to damage or loss of information from IT systems and networks. Policies generally include significant assistance with the management of an incident itself, which can be essential when faced with reputational damage or regulatory enforcement.

The key area for charities and not-for-profit organisations is understanding the specific risk that you face as an organisation and setting up a plan of how to deal with it. . . . insurance can play a key role in this plan.

It is important for you to manage your own cyber risks as a charity. Although time restraints and financial obligations may restrict you in giving this the time and consideration it deserves, the following may help you manage the risk:-

• Evaluating first and third party risks associated with the IT systems and networks in your organisation
• Assessing the potential events that could cause first or third party risks to materialise
• Analysing the controls that are currently in place and whether they need further improvement.

Finally the Government launched Cyber Essentials  which can be used as a basic cyber security hygiene standard to help organisations protect themselves against common cyber attacks.

Should you wish to discuss cyber insurance cover or risk management please feel free to contact Shirley Greer or Barry Davis within our charity team on 08000 121 131, or find out more online here.

Scrutton Bland Ltd is authorised and regulated by the Financial Conduct Authority