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Cyber insurance for management consultants

06/03/2024

Cyber insurance for management consultants protects you from the outcomes of data breaches, which can be caused by cyber-attacks, like phishing emails

Data theft. It’s the kind of thing that only hits the big guns, isn’t it? Like the WPPs and Maersks of this world. The kind of mega corporations that might actually have some information worth stealing.

Not a lowly management consultant from the south of England, right?

Wrong, unfortunately. Because it seems these days even the little guys can have their confidential data targeted.

In fact, cyber-attacks affected almost a third of UK businesses in 2023. But why target small businesses? Simple. They’re quick and easy to breach.

That’s why it pays to protect yourself. Like the unfortunate person in our example below should have done…

Warning signs

In the case of our management consultant, the first she knew of anything being amiss was when she took an irate call from a software client. It seemed their secret strategy for launching a string of new products – a strategy they’d devised with the help of our consultant – was suddenly out in the open.

Then came another ear-bashing, this time from a high-profile fashion retailer with a big online presence. A 'white-hat hacker' had contacted them with a tip-off that their business plan for the coming year was up for sale to the highest bidder on the dark web.

A big problem then, because that business plan was also our management consultant’s handiwork – that meant she was the common link.

The obvious conclusion was that that she’d been the victim of a data breach. A cybercriminal had managed to find a way into her cloud storage, probably via a phishing email or similar social engineering attack.

Even more worrying for her, because there were confidential sales figures, pricing strategies, profit projections and all sorts on there. And not just for the clients whose data had already been targeted – there were plenty of others whose information could be vulnerable too.

The right call

Our beleaguered management consultant began to dread hearing the phone ring again. So she did the sensible thing and used it to call her insurance broker instead. At that point, her cyber insurance for management consultants policy took over:

  • Firstly, a forensic investigation of the management consultant’s laptop revealed that she had fallen for a phishing email. This fake email, made to look like her cloud storage provider, prompted her to enter her account details for security reasons. Once she did this, a cybercriminal had immediate access to her account. From there, they could leak her data.
  • The forensic expert recommended some training to prevent this happening again in the future. He also installed a password manager for her and instructed her on the best practices of setting strong passwords.
  • Thankfully, the insurance paid for a replacement laptop while the investigation was ongoing, allowing our management consultant to keep on working. Cost: £600.
  • Once the reason for the leak was traced, the police got involved. They were able to remove the online listings for the data and find out who the cybercriminal was. That meant no other clients were affected, saving our management consultant a potential £27,000 in terms of lost business.
  • As it was, of the two clients whose data was offered for sale, only one sued. Thanks to the white-hat hacker’s intervention, the fashion retailer’s business plan never ended up in the hands of anyone who could use it. And even though the software client did sue (albeit unsuccessfully), our management consultant’s cyber insurance covered her legal costs – a total of £7,500.

Total saved: £35,100.

Wake up call

In our example, we gave you a total cost of the data breach our unfortunate management consultant suffered. And how much cyber insurance for management consultants saved her.

In reality, the total cost of a data breach for small businesses is difficult to pin down. There are so many different factors involved.

Here’s a more in-depth look at the cost of data breaches and cyber-attacks, so you can get a better idea of how things are looking.

Looking for some more guidance? The National Cyber Security Center (NCSC) is a great resource for cybersecurity advice.

Cyber insurance for management consultants

Unfortunately, it’s becoming all too common for management consultants and other small businesses to be affected by cybercrime. Being prepared is the best way to protect yourself.

Cyber insurance for management consultants is the perfect way to do this. Just like in our example, it’ll pay to help you get your business back on its feet. To talk more about it, give us a call on 0345 222 5391.

Image used under license from Shutterstock.

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