Why Tradespeople Need Cyber Insurance

Now you may be thinking, it won’t happen to me. But I ask you this, the chances of you winning the lottery ticket are 1 in 45 million (van Hout, 2022) and yet how many of us enter the lottery knowing the odds aren’t in our favour?

We are more likely to fall victim to cyber criminals than we are to winning the lottery yet we are more willing to spend our money on the lottery in the hopes that we will beat the odds, rather than investing in protecting our business should the odds beat us.

According to the National Crime Agency the most common cyber threats are:

1. Hacking – This could range from email accounts to social media accounts
2. Phishing – Emails advising the reader to provide personal details and security information
3. Malicious software – Allows the hacker to hijack files and hold them to ransom
4. Distributed denial of service (DDOS) – When criminals disrupt the victim’s website with a flood of internet traffic to overwhelm the victim. This is often accompanied by extortion.

So how does cyber security apply to me as a tradesperson and where should I start?

You can start by undertaking the Towergate Insurance Cyber Risk Assessment Tool which will ask you five simple questions and it will provide you with a review of your answers which identifies the potential risks.

How is my trade business at risk?

Do you have a website for your business? There are many advantages of tradespeople having websites for their business. It improves your visibility, gives your customers a way to access your business 24/7, you can showcase your previous work and provide testimonials.

Do you use social media? A survey conducted in 2018 revealed that 71% of homeowners use Facebook to find tradespeople (Simply Business, 2018). Given that social media has grown in the four years since it is possible that this percentage has increased too.

Do you store client data online? This could include personal details or payment information.

Do you use emails to liaise with customers and issue invoices? Do said invoices include your bank or building society details for your customers to process payments into your account.

All of these questions are contributors in running a successful business, yet all of these things pose the threat of allowing your business to be targeted by cyber criminals. However, this is not to say that you should cease to do these activities, they are all valuable ways of building a profitable business, but you do need to ensure that you have robust cyber security in place to ensure that your business is not part of the 0.05% of businesses that fall victim to cybercrimes. Speak to one of our advisors today to find the right protection plan for your business.

Cyber liability insurance from Towergate

To give you peace of mind, we can offer cyber insurance that is tailored to your business needs. As well as providing cover in the event of a security breach, we can also provide you with access to a team of experts who will work with you to minimise your loss and the possible damage to your business.

We also give you access to tools and resources to help you stay up-to-date with the evolving risks which will help you to understand your exposure and therefore establish a suitable response plan. For more information visit our cyber liability insurance page.

Sources

Cyber Security Breaches Survey. 2022. Cyber Security Breaches Survey 2022 – Gov.uk [online] https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2022/cyber-security-breaches-survey-2022

NFBI, 2022. Businesses have had over £2.4 billion losses due to cybercrime in the past year! [online] https://www.fenews.co.uk/work-leadership/businesses-have-had-over-2-4-billion-losses-due-to-cybercrime-in-the-past-year/#:~:text=Based%20on%20the%20report%2C%20it's,3%20billion%20in%20reported%20losses

SIMPLY BUSINESS. 2018. 71% of homeowners use this website to find tradespeople [online] https://www.simplybusiness.co.uk/knowledge/articles/2018/04/71-per-cent-of-people-use-this-site-to-find-tradespeople/#:~:text=New%20study%3A%2071%25%20of%20homeowners%20use%20Facebook%20to%20find%20tradespeople

VAN HOUT, N. 2022. 14 things more likely than winning the lottery [online] https://www.savethestudent.org/save-money/things-more-likely-than-winning-lottery.html

About the author

Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has over 20 years' experience as a residential landlord.