Why do Motor Traders Need Cyber Insurance?

cyber attack

With cyber-attacks becoming an all-too-common reality, motor traders are finding themselves among the sectors targeted.

And as vehicle technology grows ever more complex, the need for comprehensive cyber insurance is becoming clearer by the day for those in the motor trade industry.

Cyber insurance is incredibly important for businesses in all sectors. There is a growing threat of cyber-attacks out there and with new developments in technology and systems happening all the time, there are more and more areas that could leave motor traders susceptible to potential intrusion.

Consider the raft of new car technology that comes out each year. As a motor trader, you will know the direction car manufacturers are going as they introduce more automated systems, remote control command options and centralised safety systems into new models… all these things are hackable.

In terms of data, you are probably handling more information about your customers than ever before too. Much of this data is essential for your business when it comes to performing sales transactions, handling service and repair jobs and informing your future marketing strategies. But if this data is accessed by a third party with malicious intent, there could be serious consequences.

To protect customer data as well as your company’s reputation and vehicle safety, it is important that motor traders purchase the right cyber insurance for their business.

Protecting your reputation

“Virtually all UK businesses covered by the survey are exposed to cyber security risks.” – Department for Culture and Media

Remember that a cyber-attack won’t necessarily destroy your business operationally. In a lot of cases, the big risk is the potential for huge disruption and the negative impact on your hard-earned reputation as a safe and reliable motor trader.

A survey taken in 2017 by the Department for Culture and Media on Cyber Security Breaches found that “virtually all UK businesses covered by the survey are exposed to cyber security risks”. Analysis also found that all types of businesses “continue to suffer from cyber security breaches with significant financial implications”.

Interestingly, the reporting of these breaches was found to be highly uncommon leading to the interpretation that more businesses than we realise are already dealing with the reality of cyber breaches. The total cost of damage to a business might be hard to recover, especially if customers start to think twice about using your service and products.

Cyber insurance offers motor traders a cost-effective way to protect themselves against some of the financial fallout that can follow a cyber-attack.

Protecting data

“There are huge consequences for companies that are not compliant with these changing regulations.”

The European General Data Protection Regulations (GDPR) represent a significant development in data protection and privacy law. As many people will already know, the rights surrounding individual privacy have now increased along with the burden on companies who handle the data of citizens.

There are huge consequences for companies that are not compliant with these changing regulations and doing your bit to protect your customer data from cyber-attacks is a core component here. GDPR demands that companies in all sectors take measure of the changing mood regarding data protection and understand the role they are now expected to play when it comes to handling sensitive data.

Vehicle hacking

“Potential threats looking ahead to the next few years are those posed by manipulating vehicle operation, ransomware and using vehicular systems as command and control (C2) infrastructure.” - FireEye

According to FireEye, a technology company specialising in cyber security, “three of the most concerning potential threats looking ahead to the next few years are those posed by manipulating vehicle operation, ransomware and using vehicular systems as command and control (C2) infrastructure for illicit cyber activity.”

Features such as web browsing, Wi-Fi access points and remote-start mobile phone apps all enhance the user experience in today’s latest cars, but also greatly increase the potential points of access for a cyber-attack.

An example many might recall is the time a Jeep Cherokee was remotely hacked while on the highway in 2015 – entertaining and shocking many readers of WIRED, this scary example is gradually becoming a common reality that owners and traders of today’s highly connected vehicles must face.

A valuable asset

“If the cyber-attack results in loss of funds or access to finance, then insurance is vital for sustaining the operations of your business.”

You can’t always prevent a breach, but you can take steps to ensure you have the proper protocol set up to handle it when it happens. This includes having a clear plan of action as well as comprehensive cyber insurance to assist your business in the fastest possible recovery, covering your expenses wherever possible.

If the cyber-attack results in loss of funds or access to finance, then insurance will be vital for sustaining the day-to-day operations of your business and keeping your customers happy. You should consider insurance against financial crime alongside, or as part of, your cyber insurance cover.

The best course of action is to have the contact details of your insurance provider at hand should the situation require quick and effective action. With Bollington offering 24 hour reporting of claims, we can help to provide additional peace-of-mind in the event of a cyber incident.

 

Does your motor trade insurance policy cover you for cyber attacks? Give the experts at Bollington a call and make sure you’ve got the coverage you need. For more information call 01625 854443 or click here to get a motor trade insurance quote online!

Get covered

“Businesses should be looking for effective insurance that covers all the potential cyber security issues that they may face.”

Cyber insurance has changed dramatically over the years. While its focus was once on data breaches, insurance is now designed for organisations that need wider coverage for the various aspects of their businesses. Regardless of the sector, businesses should be looking for effective insurance that covers all the potential cyber security issues that they may face.

Technology is at the heart of all industries including the motor trade sector. Whether it is the storage of data or the emerging integration of technology into new car systems, the threat of a cyber-attack is ever present and motor traders should search for the best cover they can afford.

Speak to Bollington today to make sure your motor trade insurance policy offers sufficient coverage to protect your company from the fallout of a cyber-attack. Our specialist business insurance team can help you add cyber insurance cover to your motor trade policy. Find out more about cybercrime and how to prevent it, then give us a call to see how we can help you.

And if you haven’t already got motor trade insurance with us, you can get a motor trade insurance quote online now!