Small business insurance provider reveals research findings

One small business insurance provider recently revealed research findings that indicate nearly 25 per cent of businesses have concerns about cyber crime and e-risks.

Specialist insurer Hiscox found that 41 per cent of business liability insurance policy holders surveyed were most concerned with risks to their computer equipment.  Other causes for concern for respondents included hacker damage, loss of confidential information, online identity fraud, and data theft.

Information security incidents can cost a small business anywhere between £10,000 to £20,000 in damages, according to government statistics.  John Heaney, small business insurance expert for Hiscox, commented that firms need to ensure they are properly protected against data theft in addition to physical property losses.

Small businesses need to consider how to protect their online assets, the insurance industry expert continued.  He added that businesses need to put strategies in place to mitigate their online risks given the importance of data in the current business marketplace.

Data is akin to currency in the Information Age, said Mr Heaney.  While information access has been facilitated by the advent of the Internet, it has also increased the likelihood of being the victim of electronic ID theft or hacker attacks, and the Hiscox expert stated that businesses need to look beyond physical site security and also consider online measures as well.

Hiscox stated that there are several ways to increase online security.  One such strategy would be to protect sensitive business information by instituting a need-to-know employee policy.  Additionally, managing who has access to files if information is stored in a central location can help to prevent either deliberate or accidental data loss.

The insurer also recommended that any business that does not have online technical expertise should immediately seek the advice of an online security professional.

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