ICO fines cut deep, can Cyber Liability policies solve the problem? - GRP National Cyber Practice Leader Nick Ellis comments on what is now a massive issue for UK businesses.
"The UK International Commissioners Office are cracking down hard on UK businesses - failing to properly protect Third Party information now incurs huge consequence and cost.
In this instance Marriott would likely have a quality Cyber policy in place where fines and costs are covered but to what level? The message when buying a Cyber policy is 'buy as much cover as you can afford' but can large corporate and blue chip type businesses buy enough? How do they really know how much cover they need at this level? It's a hard question to answer.
However, it's the smaller business that can be helped out by a good Cyber Liability product where not only the fine would be within a smaller indemnity limit but the forensics costs would be covered, the remedial help to get the business back to where it was before the event and also the resource to improve the IT infrastructure moving forward.
Although easier for hackers to penetrate, SME type businesses require smaller limits of cover, making it affordable but also supplying suitable relief enabling total coverage in a similar situation as Marriott International.
Not having a Cyber Liability policy at all these days is just not an option any longer due to the financially crippling consequences that will follow."
Read the full article which has been posted on Nick's LinkedIn page
For further details of the Marriot case see the Insurance Business website