In light of the Government’s new report which states that UK cyber crime costs the UK economy £27 billion a year, research by specialist small business insurer Hiscox reveals that nearly a quarter (22 per cent) of SMEs are concerned about e-risks and cyber crime.

Hiscox SME insurance expert, Alan Thomas, commented: “In light of these latest Government figures and the importance of data to businesses, it is essential that SMEs have strategies in place to mitigate online risks. Our research reveals businesses are now more concerned about cyber crime (22 per cent), such as hacker attacks and electronic ID theft, than having cash (eight per cent) stolen from their premises.”

“Our research also revealed that over a third (38 per cent) believed that their businesses are more likely to be a target of burglary since the start of the financial downturn which makes it all the more important to put in place robust security measures.”

Hiscox offers the following security tips to help SMEs to protect against online and offline risks:

Protect information with a need-to-know policy with employees. If storing information on a central file server, manage who has access to files. This can help prevent data loss whether accidental or deliberate

Running an enterprise is a full-time activity and if you do not have online technical expertise seek professional advice on security. This can both save time and ensure the security measures cover the business needs

Encrypt important information for extra security so that only authorised users will be able to access them

Using the internet and email to conduct business means that data loss becomes a risk. Develop a clear email policy and raise online security awareness and issues with employees

Back up your files and check your insurance cover so that you can get business up and running again quickly in the event of an incident

Items like laptops and computer monitors are common targets for thieves and the real cost of a stolen IT asset isn’t just the hardware, it’s the lost data and the lost productivity. Lock servers in a room and move laptops into a secure drawer at the end of a working day .

Bad things happen. It’s a fact of life. But with a little preparation, businesses can mitigate some of the impact.

There are some estimates that 80 per cent of businesses with no business continuity plan fold in the aftermath of a major disaster. And while this could be something along the lines of a national emergency such as a terrorist attack or health epidemic, it could just as easily be something closer to home, for example the incapacity of a key member of the business. Or it could be something as simple – yet damaging – as a strike leaving you out of contact with your customers.

Putting a plan in place can not only help you arrange procedures for dealing with emergencies; it also provides a step-by-step guide for individuals to follow when they may be finding it difficult to make decisions – giving them a route to follow will help them work through the crisis.

“By developing a simple plan, a business continuity plan, you can protect your business to ensure that no matter what disaster strikes you are prepared and “Business as usual” is the only thing your customers and suppliers see,” says Colin Ive from SME Continuity.

Your first step, according to the Contingency Planning and Disaster Recovery Guide, is to prepare a list of all the potentially serious events that could happen. This doesn’t necessarily mean listing all the disasters that could befall you, but looking at the issues that would affect your business. So instead of listing swine flu, ebola or any other illness, the list would include something along the lines of staff shortages or key person unavailability.

For each potential issue, you need to come up with a process to follow – the key people involved, any suppliers that need to be contacted, a list of contractors who may be able to support you and, vitally, any insurance policies you can claim on.

While business insurance won’t be able to completely prevent any effects of a disaster, it can help to mitigate any costs you may incur. Key Man Insurance can provide a cash injection into a business in the event of the untimely death or incapacity of a specified member of staff. The funds can be used to offset any loss of revenue caused by that person’s absence, or to recruit or train a new person in that position.
If your business is hit hard, and has to stop trading for a short period, Business Interruption insurance can help to tide you over. It’s a short term solution for a few weeks and is there specifically for if you have to stop trading due to factors outside your control – it doesn’t cover a downturn in trading conditions.

If the emergency is a bit closer to home, public liability insurance and employers’ liability insurance will protect you from claims for issues that arise on your premises. We live in a culture of litigation and if an injury or damage could be found to be your responsibility, then expect a hefty bill.

Summer security shortfalls are potentially putting two million small businesses at risk of burglary, according to new research released today by specialist business insurer Hiscox.

At a time when cash flow is tight and an office theft could be devastating to a small business, the survey found that security lapses are putting SMEs at risk:

• Just under half (44 per cent) of small businesses say staff are more lax about closing windows, setting alarms and locking exit doors in the summer months of June to August;
• One in five respondents (20 per cent) have arrived at work to discover that a window or exit has been unlocked or the alarm is not set;
• Almost half (48 per cent) believe workers are never as stringent about security measures as they would be in their own homes.

And the study also reveals that small business owners are themselves failing to prioritise their security strategies. Even in times when redundancies are commonplace, almost three quarters (73 per cent) admit that they don’t change locks and access codes to the office when staff leave the company. Of even more concern for a sector where there is often only one person left in the office, almost eight out of ten (78 per cent) small businesses take no extra security precautions for employees who find themselves in this situation.

The implications of an office robbery can be huge for a small business – one in five SME employers (22 per cent) cite the financial costs of replacing equipment as their major concern, while a further one in five (20 per cent) fear the loss of staff productivity.

Hiscox has provided security tips to help SMEs this summer:

• Make sure you use all your security measures every time the office is left unattended
• Protect your business by changing access codes and removing systems access when employees leave
• Plan for how you would do business if your office is damaged or you lost some equipment. Regularly test the plan to make sure it works
• Take appropriate steps to protect sensitive business information, including clients’ data.

Sam Franks, small business insurance expert at Hiscox UK, said: “The summer months are a prime time for burglaries and it is crucial for small businesses to take all of the necessary precautions against office theft. Many of these steps are quite simple and could be as straightforward as having a procedure in place to ensure the office is fully secured at the end of each day.

“Theft can have a number of devastating consequences to a small business; not least the impact on staff productivity and the loss of income while equipment and client data are restored. Simple tricks such as backing up data and improving IT security can save a business thousands of pounds, while having the necessary insurance cover is vital should the worst happen.”