Business – Page 2 – Rowett Insurance Broking Group Blog

The importance of cyber insurance for small businesses

11 May 202311 May 2023 Gareth Rowett

In today’s digital age, small businesses face numerous risks related to cyber threats. With the world becoming increasingly dependent on technology, cybersecurity has become a necessity for small business owners. Cyber insurance is an essential tool that can help mitigate these risks and protect businesses from potential financial losses.

43 percent of all cyberattacks target SMEs

Small businesses are increasingly becoming targets of cyber attacks. A study by Verizon shows that 43 percent of all cyberattacks target small businesses. These attacks can have significant financial implications for small businesses, and in some cases, lead to bankruptcy. Cyber insurance provides financial protection to businesses against these types of attacks.

Protecting your data

One of the most significant risks that small businesses face is data breaches. A data breach can occur when a business’s sensitive information is accessed by unauthorized individuals. This can lead to identity theft, financial loss, and damage to the business’s reputation. Cyber insurance can help cover the costs associated with a data breach, including legal fees, notification costs, and the cost of providing credit monitoring for affected individuals.

Increasing risk of ransomware attacks

Ransomware attacks are also becoming increasingly common among small businesses. Ransomware is a type of malware that encrypts a business’s files and demands payment in exchange for the decryption key. Cyber insurance can help businesses recover from a ransomware attack by covering the cost of data recovery and ransom payments.

Disrupting your day-to-day

Small businesses are also at risk of business interruption due to cyber attacks. For example, if a business’s website is taken down by a DDoS attack, they may lose revenue from online sales. Cyber insurance can help cover the costs associated with business interruption, including lost income and extra expenses incurred to get the business back up and running.

Additional layer of protection for businesses

It’s important to note that cyber insurance is not a substitute for cybersecurity measures. Small businesses should still take steps to protect themselves from cyber threats, such as implementing strong passwords, encrypting sensitive data, and training employees on cybersecurity best practices. However, cyber insurance can provide an additional layer of protection for businesses that may not have the resources to implement robust cybersecurity measures.

In conclusion, cyber insurance is essential for small businesses to protect themselves from the financial losses associated with cyber attacks. With the increasing frequency and severity of cyber threats, cyber insurance has become a necessary investment for small business owners. By investing in cyber insurance, small businesses can safeguard their finances and continue to operate even in the face of cyber attacks. Want to know more? Get in touch with us on 01726 871144 option 3. Or head to our dedicated page on cyber insurance for more information.

What claims inflation means for you in 2023

8 April 20237 April 2023 Gareth Rowett

Costs for materials and energy continue to climb in 2023, caused by a number of situations including the continued fallout from the Covid Pandemic, Brexit and the war in Ukraine. The impact of inflation has become widely apparent across insurance products – particularly for lines such as property, motor, business and construction. But what does this mean for insurance customers?

What is claims inflation?

Claims inflation is the increase in the amount it would cost to settle an insurance claim. This is due to rising costs in labour, materials and energy – so a rebuilding project in 2023 will cost significantly more than it would have done a year ago.

Why are my insurance premiums increasing?

Simply, because the cost and demand of raw materials parts and labour has increased significantly, to address this claims inflation, your insurer will increase your insurance premiums to cover the rise. Insurers calculate the increase in your insurance premium by using an index that they apply to the declared value of items, energy and labour costs. The result reflects the current, true cost of reinstatement, rather than how much it cost back when you first took out your policy.

What should I do about my insurance premiums?

At Rowett Insurance Broking Limited, we will work closely with you to determine the best policy that suits your needs, but there are steps you can take yourself to keep your insurance premiums as low as possible, show insurers you are a good risk and mitigate any potential loss:

For property insurance customers: Carry out all essential maintenance and conduct regular checks on your roof and gutters. Record any activities where you are keeping guttering clear of debris, mending and renewing areas of concern

For business insurance customers: Devise a business interruption/recovery plan before you experience an incident to help to keep future costs in check. Make sure your indemnity periods are adequate as mentioned below

For motor insurance customers: Install a dashcam in your car to record any incidents or accidents. This could help to speed up the claims process and helps the insurer to confirm that you are not committing insurance fraud, which is one of the causes behind higher insurance premiums.

If you are a business insurance customer, whilst reviewing your business interruption/recovery plan, it is advisable to check the indemnity period for business interruption cover to account for supply chain issues and delays – Brexit, Covid-19 and the war in Ukraine have resulted in workplace shortages and supply chain delays, which means that repair work could take significantly longer than it would have in previous years. The British Insurance Brokers’ Association also recommends calculating your gross profit carefully to avoid underinsuring, as well as taking into account your business’s predicted growth. We can help you with this.

For most contents insurance customers, your items will be insured on the amount it would cost to replace them as new – insurers will take inflation into account when you make a claim, so make sure you declare the items’ values accurately when purchasing your policy. For harder-to-value items and rebuild costs, it is advisable to use a specialist property surveyor to determine the value, ensuring they are Royal Institution of Chartered Surveyors (RICS) certified.

Generally, as an insurance customer, the more detail and data you can provide about the incident, and the sooner you can provide it, the sooner the insurer can intervene and the claim can be settled—and the greater the potential to minimise costs.

Want to know more about how we can help? Get in touch on 01726 871144 today.

Taking Your Fundraising Strategy to New Levels: Advice for Charitable Organisations

7 April 20237 April 2023 Gareth Rowett

Fundraising has come a long way since door-to-door leafleting and school fetes. Currently, crowdfunding has the potential to raise thousands of pounds for a cause over a matter of days proving technology gives you huge potential to enhance your fundraising strategy. No matter the size of your charity, you could save time and raise more money with the right software in place.

Customer Relationship Management (CRM) Software

CRM software provides charities with a comprehensive platform allowing them to collate member profiles, create and track campaigns and conduct simple campaign promotion. It essentially enables a vast amount of functionality, encompassed into a single platform. This software can be configured to your use, so if you’re a smaller charity wanting a limited platform or a global charity with complex requirements, it can be tailored to fit your needs.

Diversifying fundraising platforms

Technology enables you to branch out when it comes to how, when and where you fundraise. Kiosks in town centres enable people to swipe their card to gift your charity if they’re passing and may encourage them to sign up for a regular donation. Online and mobile giving, such as donation forms on your website, text-to-give, and mobile bidding apps enable people to donate to your cause at any time of day.

Crowdfunding pages also have a part to play in charity fundraising, making it easier than ever for your supporters to raise funds for your charity and, in turn, raises awareness of your charity.

Marketing, engagement and maximising reach

Social media enables charities to build online communities and supports unlimited global reach. There are tools available for you to schedule posts and emails in advance, at the optimum times so they have the most impact. You can also use list segmentation features to filter through your supporters in order to avoid bombarding them with information, potentially warranting an ‘unsubscribe’, and instead send out relevant communication at appropriate intervals.

There’s a plethora of other tools, software, apps and devices out there so your charity can keep on top of its fundraising game. It’s important to remain relevant and appeal to millennials as a charity in order to ensure you can stand the test of time and carry on the great work that you do.

To speak to Rowett Insurance about the Charity and Not for Profit Insurance we can provide, speak to the team today on 01726 871144 option 3.

How To Spot A Cyber Attack

20 February 20237 April 2023 Gareth Rowett

Think that you could spot a cyberattack a mile away?

Find out more about social engineering in Cyber Attacks

Gone are the days when the term phishing was associated with a leisurely Sunday afternoon activity and trees were the only victims of hacking. As we continue to make dramatic advancements in the digital and tech space, the threat of cybercriminals has grown significantly, and the methods used aren’t just limited to viruses and ransomware.

What is social engineering and how it is used in cyber-attacks?

When cybercriminals use social engineering tactics, they aim to psychologically manipulate their victims for their own gain. This often includes handing over sensitive information or transferring large amounts of money to an unknown account. These attacks can occur at any time, through text, email, phone calls and social media chat facilities.

What does a social engineering attack look like?

Social engineering attacks often appear to come from a trusted source such as a friend, relative or colleague. Or you may find they approach you as your banking, utility or broadband provider. The purpose of this impersonation is to gain your trust.

Phishing

Most phishing attacks aim to obtain personal information from the victim. These are often opportunistic and use fear tactics based on what’s happening in the world at the time, such as the COVID-19 pandemic. No two types of phishing attacks look the same so it’s important to remain constantly aware of this threat when working online.

Baiting

Very similar to phishing attacks, baiting uses the promise of free goods or services to encourage victims to hand over information. This tactic also takes advantage of our natural curiosity, asking us to click a link to uncover a mystery prize or access a piece of information.

Tailgating

Not all cyber-related attacks happen online. Tailgating attacks occur when a criminal attempts to access your office premises by tailgating an employee, playing on our instinct to be polite and hold the door open for the person behind us. Some criminals have even gone as far as to wear fake baby bumps to garner sympathy – because who would shut the door on a pregnant person?

Pretexting

Unlike phishing attacks which are usually conducted in mass, pretexting attacks try to build a believable scenario to establish trust before they try to obtain information. For example, you could receive an email from your CEO who states they’re about to enter an important meeting and need your password urgently to access a system. Or you may receive a call from your payroll team saying your payment didn’t go through this month and they need to check your account details. These types of attacks are designed to put pressure on the individual, so they act fast without careful consideration.

How to recognise a social engineering attack

Cybercriminals are changing their methods all the time, so there’s no exact formula that makes up a social engineering attack – but there are red flags to look out for.

These include:

Requesting information or money access.
Evoking a sense of urgency in the email.
Short and concise.
Asking you to donate to a charitable cause.
Asking you to verify information.
Responding to a question you did not ask.
Using fear tactics – threats or intimidation.
Offering you something too good to be true.
How to protect yourself against a social engineering cyber attack.

When it comes to protecting yourself and your business against cybercrime, you need to remain vigilant and think before you click.

Training

Ensure that your staff are up to date with the latest cyber training, implementing measures to ensure it remains at the forefront of their minds. If you have a near miss, let people know about it.

Anti-virus software

While it doesn’t make you immune to a cyber-attack, it helps to create an extra barrier of defence with well-reputed anti-virus software. Look at setting your spam filters to high – although keep an eye on your junk mailbox to ensure nothing legitimate slips through the net!

Check the sender

Encourage your staff to always check the source if an email seems suspicious. As well as checking the email address itself, recipients can hover over links (don’t click them!) to see where they lead.

Simulate social engineering events

It’s hard to know how you’re going to react to a social engineering attack until it happens. That’s why it’s a great idea to send test emails to your staff to see what they would do. Use this as a learning tool to educate them on what they should do if a real risk presents itself.

Monitor your digital footprint

Some of us tend to overshare on social media, giving hackers ammo to hack into our devices. But have you considered what you’re sharing outside of these platforms? For example, if your CV is online – are your address and phone number on this? Not to mention your old schools, interests… the list goes on. Think twice about what you share online.

Get Cyber Insurance

Despite nearly 40% of all UK businesses reporting at least one cyber attack in the last 12 months, businesses are still not taking the threat of cyber attacks seriously enough. Now, the Government are urging businesses to take steps to improve their digital resilience. Cyber Insurance is designed to protect your business in the aftermath of an attack, including investigation, data recovery, loss of income, reputation management and more. To discuss how you can better protect your business with dedicated Cyber Insurance, give Rowett Insurance a call on 01726 871144 option 3.

More information: https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2022/cyber-security-breaches-survey-2022

Some New Year’s Resolutions For Business Owners

10 January 20237 April 2023 Gareth Rowett

Does your list of New Year’s resolutions look something like this?

Do more exercise at least three times a week.
Save more money.
Give up smoking, drinking and chocolate – unless it’s the weekend.
Learn a new language.
Volunteer more.

Wait… what was the first one again?

New Year’s resolutions are great, that is, if we keep them. Unfortunately, statistics reveal that 80% of all New Year’s resolutions have already been broken by February. This is mostly because we set ourselves the highest of standards which cannot usually be reached without the strongest of willpower and more time than we have available to us.

Whilst the odds may be against you, it’s still worth setting yourself achievable goals to measure your performance by and what better time to start at the start of a shiny new year?

We take a look at some business New Year’s resolutions that are achievable, measurable and realistic.

Review your mission

It’s good to re-evaluate your business plan, your company mission and your USPs at the start of each year in order to ensure that you, your employees and your customers are up to date, on the same page and working towards the same goals.

Create measurable goals

Think about setting SMART goals, that is – Specific, Measurable, Actionable, Realistic and Timed. Think clearly about what you want to achieve and the timescales in which you want to achieve it. Ensure that your goals are realistic and think of a way you can measure the progress and success of a goal. Try not to leave the timescale open-ended, working to a deadline can keep your team on track.

Reflect on your business expenditure

Take time to look over your business expenditure and try to identify areas in which you can cut costs. Maybe you’re leasing equipment when it would now be cheaper and more efficient for you to buy it outright, or vice versa? Now’s the time to make some changes to free up your budget.

Delegation

Review the roles of your employees to see if certain tasks can be delegated across roles to free up more time for work which only certain members of staff can complete. It can be tempting to take on everything yourself to ensure it’s done right but allowing other to take care of time-consuming tasks can leave you with more time to concentrate on growing your business.

Take advantage of social media

Many of us put social media on the backbench when things get busy, however, this can be detrimental to your customer engagement, marketing strategy and digital presence. If your business currently doesn’t have the funds or capacity to accommodate a full-time social media guru, you can take advantage of a content planner which allows you to create and schedule posts months in advance, so you’re covered during the busier periods.

Draft up a timeline

Make a simple list of what you want to accomplish during the year and note them down on a timeline for the year, broken down by the month. Doing this alongside more concise goals can be a great way to get both an in-depth perspective and a broader overview of whether you’re staying on track throughout the year.

Check that your insurance is up to date

Finally, you need to ensure that your insurance is still suitable for your business, taking into account any changes throughout the past year. For help with this, call Rowett Insurance Broking Limited on 01726 871144 option 3. We will evaluate your existing cover and recommend any changes or a policy which may be more suitable to your future operation.

two people discussing business with a laptop

Why You Should Use An Independent Insurance Broker

15 December 20227 April 2023 Gareth Rowett

Searching for insurance for your business can be an overwhelming – not to mention stressful – experience. No matter what type of business you’re trying to insurance, there are always multiple policies on the market, offered by insurers all claiming to provide the best deals.

So, what do you do? Not wanting to spend time searching around, many people purchase one of the first policies they’re offered, only to realise a few months down the line that they aren’t receiving value for money or worse, that they’re underinsured.

One way to avoid this happening to you is to enlist the help of an insurance broker. A broker will act as your personal adviser for insurance matters, ensuring you receive comprehensive cover for a competitive price. Here are some reasons why you should consider an insurance broker for your business:

They are experts in their field

Whereas you might be unfamiliar with the insurance market, brokers are experts in their field with years of experience in finding clients the right deals for the right price. Not only will they match you with the most suitable policy, but they can also help you to understand the ins and outs of policy terms and conditions, so you know exactly what you’re covered for.

You’ll receive impartial advice

If you go direct to an insurer, they are bound to claim that their policy is the best for you, regardless of whether it genuinely provides suitable coverage for your individual requirements. Brokers, on the other hand, compare policies from numerous insurance firms, so you can be sure that any advice they give you will be unbiased.

You’re guaranteed quality coverage

Brokers have access to a wide range of insurers and only use reputable firms they know provide excellent service and quality insurance products.

They’ll likely save you time and money

If you use a broker, they’ll do all the hard work so you don’t have to! No more time wasted scanning comparison websites or filling out seemingly endless quote forms.

You don’t need to pay to use a broker’s services as they are paid commission by the insurers they work for. What’s more, brokers are often able to secure you exclusive insurance deals that you won’t be able to find on insurers’ websites.

They take your individual requirements into account

Brokers know that no two clients are the same – everyone has different insurance needs – so they take the time to assess your individual requirements and ensure they match you with a policy that provides adequate coverage of those requirements.

Brokers can be particularly useful if you have any unusual requirements which often aren’t covered in standard policies, often required in areas such as manufacturing and renewable energy.

They’re flexible

How many times have you emailed an insurance company and only received a reply weeks later? How many minutes have you wasted waiting on the phone just to speak to someone about your policy?

Brokers are far more accessible than insurance companies. They’re easy to contact and you can choose how to communicate with them. For example, you might want to arrange a face-to-face meeting to discuss your insurance needs, or you might prefer a chat on the phone. The choice is yours.

They’re in it for the long-term

It’s not uncommon for communication to dwindle the moment an insurance company has you signed-up. Brokers, on the other hand, are in it for the long-term and will provide you with support whenever you need it.

If you’re ever in a situation where you need to make a claim, it can be a daunting experience. What steps do you take first? What information do you need to provide? If you’ve used a broker, they’ll act as your advocate and guide you through the process to help get you in the position you were before the incident occurred.

Using an insurance broker will likely save you time and money, ensuring your business is fully protected and for the right price. Want to know more? Get in touch with us on 01726 871144 option 3.

Multi-Factor Authentication – What is it and what it means for your business

30 November 20227 April 2023 Gareth Rowett

Have you heard of Multi-Factor Authentication or MFA?

While it might not mean much to some of you, it’s about to become one of the buzzwords in the Cyber Insurance industry. Here’s why.

What is Multi-Factor Authentication?

Multi-Factor Authentication requires system users to go through two layers of identification to access control of a system. Think about the systems you access regularly. Your ATM for example, the first layer of identification is your debit card, the second is your PIN. Or when you enter your credit card details online, each piece of information you provide is a separate layer of authentication, including your card number, expiry date and security code. Many providers also ask you to verify the purchase using an app – another layer of authentication.

Something you know, something you have, something you are

Multi-Factor Authentication is sometimes referred to as:

Something you know: A username or password

Something you have: Verification text on a mobile, key fob

Something you are: Biometric authentication, including fingerprint or retina scans

Multi-factor authentication is successfully enabled when at least two of these categories are required to successfully verify someone’s identity before gaining access to a system.

Why is it important?

Multi-Factor Authentication is important as it helps to make sure that a business’s IT systems remain secure, along with their customer and staff data. It effectively makes accessing it more difficult for cybercriminals to target your business. The harder your systems are to access, the less of a target you will be. It also helps to target natural human error – are your employees using the same passwords for everything? The more stringent password policies you set, the more time your IT team will spend resetting them – Multi-Factor Authentication helps to remove this pressure.

What it means for your Cyber Insurance

Multi-Factor Authentication isn’t currently a requirement for all insurers who provide Cyber Insurance policies, but it is heading in that direction. Cyber Insurance claims are being made thick and fast and many of these start with compromised passwords or IDs. It’s your responsibility as a business to ensure that you have sufficient levels of cyber security in place to prevent such an attack from happening and Multi-Factor Authentication is simple and low cost way to improve your cyber security.

If you are interested in a quote for cyber insurance please visit our website or phone 01726 871144 option 3 for the commercial department.

10 Reasons why You Need Professional Indemnity Insurance

15 November 20227 April 2023 Gareth Rowett

If a company is providing advice, design, skills or knowledge in a professional capacity, or handling intellectual property, they are wholly responsible for getting it right. Professional Indemnity (PI) covers the insured against their legal liability to compensate third parties for injury, loss or damage due to a breach of duty in the conduct of their profession.

The team at Rowett Insurance has teamed up with Allianz to tell you 10 reasons why you might just need PI insurance:

1) Mistakes can happen

Companies will avoid mistakes and give the best advice or services possible to ensure good client relationships. However, mistakes can happen, leaving the company open to large legal costs and compensation claims. Negligence is a core cover for PI and would provide protection against allegations made.

2) Compulsory or optional?

For many professions, such as chartered accountants and chartered surveyors, it is a regulatory requirement to have PI insurance to practice. Not having this cover could mean a business being stripped of its regulated status, making it difficult to operate.

3) Intellectual property

Unintentionally producing materials that infringe intellectual property rights, e.g. using online images without the owner’s permission, could lead to litigation for copyright. PI can protect a company against legal costs and compensation.

4) No PI insurance, no contract

It’s becoming more common for clients to request that PI cover is in place before a business relationship commences. Having PI gives confidence to clients that businesses are run professionally.

5) Vulnerability if a claim is brought against you

Each time a professional gives advice or offers a service for a fee, they are potentially vulnerable. From SME’s to large corporations, having no PI insurance could leave a company’s financial position exposed.

6) Handling clients’ information

Even with adequate data protection and policy procedures in place, data can sometimes accidentally get lost. PI would cover the cost to replace or restore any damaged, distorted, erased or mislaid documents including electronic or digitised data.

7) Employee negligence

Even with an extensive training programme for new and experienced staff, the way employee’s carry out their work activities is ultimately beyond the company’s control. This could leave the company exposed to liability claims. PI cover gives peace of mind in the event of an employee’s negligence.

8) A duty of care

Professionals could owe a duty of care to anybody who may rely on the service or advice they have provided. In today’s world, clients expect high standards of service and are more inclined to resort to litigation when this has not been met. PI insurance would provide protection against such claims.

9) Peace of mind

There’s a lot to consider when running your own business, especially the responsibility of getting things right. PI cover takes away the legal and financial worries should a PI claim arise to ensure businesses continue to operate as usual.

10) Defamation cover

PI cover will provide protection against an accidental lapse in judgement resulting in a defamation claim. For example, sharing information via social media about a client which can be perceived as negative or slanderous.

Claims Example

An acoustic consultant failed to adequately design the acoustics of a concert hall. As a result of the negligent design, when the concert hall was fully constructed, those patrons sitting at the rear of the auditorium could barely hear what was happening on the stage. The claim was settled for £35,000.

Claims Example

A marketing agency was commissioned to print brochures for a client. When the brochures were printed, the agency realised that they had made a mistake in the spelling of the web address and contact details. The reprinting costs of over £12,000 were met by the PI cover.

Want to know more?

If you want to find out more about Professional Indemnity Insurance and whether it’s right for your business, get in touch with the team at Rowett Insurance on 01726 871144 or email office@rowett-insurance.co.uk

What Does Business Resilience Mean To You?

3 November 20227 April 2023 Gareth Rowett

Did you know that nearly 1 in 5 UK businesses suffer a major disruption once a year? Change is inevitable and it’s impossible to predict what’s around the corner. Over the past few years, UK businesses alone have faced Brexit, the Covid-19 pandemic and most recently, the cost-of-living crisis. How prepared was your business for these events? Is there anything that you would change if you had to face something similar again?

Managing change isn’t easy, but with processes and workflows in place that set out what your business should do in the face of a major disruptive event, organisations have a better chance of continuing to operate through turbulent times. We look at what your business needs to do to become more resilient to disruptive events, helping you to make the right choices among the chaos.

What is business resilience?

The term ‘business resilience’ describes a business’s ability to adapt to, and continue to operate under, unforeseen disruption. This can include natural disasters, economic disrepair and major supply chain failures. To become resilient, a business should have a series of holistic management processes – or a ‘business resilience plan’ in place for the ‘what ifs’ – changes that have the potential to cause significant disruption to the day-to-day running of your business.

For example:

What if your business is affected by a flood or fire?
What if your energy supply was interrupted for a day? What if it was a week?
What if your business was targeted by a cyberattack, resulting in a data breach?
While it’s impossible to predict exactly what the future holds, by having a series of processes in place, your business will be better prepared should disaster strike.

Creating a business resilience plan

There are several stages to building a business resilience plan, including:

Analysis – Conducting a full risk evaluation to determine your priorities, how these would be impacted by key disruptions and how much time you would have before the situation became critical. At this stage, you should consider your resources and what is realistic for your organisation.

Design and Implementation – Consider the processes and strategies required for your business to correctly respond to and recover from the key disruptions above. These processes will need to account for areas such as business processes, who is responsible for what, backup arrangements and emergency contacts. Consider how will these be presented – will they be heavily detailed or set out as a series of checklists?

Testing – It’s crucial that you immediately test your plans for any gaps or discrepancies, you can do this using walkthrough exercises or by using online or physical simulations. You can then tweak the processes based on your findings.

Business resilience and insurance

While creating a business resilience plan can make the difference between a company surviving unexpected events or not, for many, being truly resilient as a business means much more than simply having a Business Continuity Plan in place.

Part of ensuring your business is resilient is making sure that you have the right insurance in place. From Business Interruption cover to Cyber Insurance, these policies are all geared to ensuring that you have financial support should disaster strike. Without the right foundations, your business could be in trouble from the offset.

To make sure you get this right, at Rowett Insurance Broking Limited, we know insurance inside and out and can help you shape a policy that mitigates the risks that your business faces. To find out more about how we can help your business, just get in touch on 01726 871144 option 3 or visit our dedicated commercial insurance pages.