{"id":23568,"date":"2023-08-29T15:45:47","date_gmt":"2023-08-29T14:45:47","guid":{"rendered":"https:\/\/www.policybee.co.uk\/blog\/?p=23568"},"modified":"2025-10-14T14:42:09","modified_gmt":"2025-10-14T13:42:09","slug":"why-online-retailers-need-cyber-insurance","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/why-online-retailers-need-cyber-insurance","title":{"rendered":"Why do online retailers need cyber insurance?"},"content":{"rendered":"\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"300\" src=\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2023\/05\/online-retailers-why-do-online-retailers-need-cyber-insurance-istock.png\" alt=\"Online retailer check out on comuter and mobile graphic. Why do online retailers need cyber insurance?\" class=\"wp-image-23366\" style=\"object-fit:cover;width:300px;height:150px\" srcset=\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2023\/05\/online-retailers-why-do-online-retailers-need-cyber-insurance-istock.png 600w, https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2023\/05\/online-retailers-why-do-online-retailers-need-cyber-insurance-istock-300x150.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n<\/div>\n\n\n<p>Having an online shop rather than bricks and mortar has loads of great benefits. The upfront costs are much less and you can reach a way bigger customer base. You don\u2019t need to hire anyone to man the shop or be a slave to your job 24\/7.<\/p>\n\n\n\n<p>Not to mention the convenience for customers too, being able to buy their favourite things from the comfort of their sofas.<\/p>\n\n\n\n<p>But there are still risks. And ones that shouldn\u2019t be taken lightly.<\/p>\n\n\n\n<p>Cybercrime is a very real and present danger for all businesses that operate online. And <a href=\"https:\/\/www.nwcrc.co.uk\/post\/what-cyber-threats-do-retailers-face\" target=\"_blank\" rel=\"noreferrer noopener\">98% of businesses in the UK do<\/a> in some way or other.<\/p>\n\n\n\n<p>Online retailers, of all shapes and sizes, are a prime target for cybercriminals.<\/p>\n\n\n\n<p>Here\u2019s a closer look at why online retailers need cyber insurance to be at the top of their insurance shopping list\u2026<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Digital pirates. Pay up or else!<\/strong><\/h2>\n\n\n\n<p>Cybercriminals know that if they can stop your website from functioning, your business will simply shut down and you won\u2019t make money. And they\u2019ll prey on that. They know you\u2019ll do anything to get your business back up and running and keep your reputation intact.<\/p>\n\n\n\n<p>If you hold personal data &#8211; that\u2019s stuff like customer names, addresses, emails, and bank card details &#8211; hackers can hit you with a <a href=\"https:\/\/www.policybee.co.uk\/blog\/ransomware-insurance-a-simple-guide\" target=\"_blank\" rel=\"noreferrer noopener\">ransomware<\/a> attack. They\u2019ll threaten to delete your data unless you pay them a ransom fee. Or steal your data and use it for their own criminal gains.<\/p>\n\n\n\n<p>And trust us, your customers won\u2019t be best pleased if they find out their details have been taken hostage.<\/p>\n\n\n\n<p>The worst part for you is that there\u2019s a good chance you could lose those customers. Because trust is everything when it comes to who we shop with online.<\/p>\n\n\n\n<p>Ransomware attacks are rapidly on the rise in the UK, and roughly <a href=\"https:\/\/www.chargedretail.co.uk\/2022\/02\/17\/cybercriminals-target-retail-cyberattacks\/\" target=\"_blank\" rel=\"noreferrer noopener\">one in five attacks<\/a> are aimed at online retailers. So you need to be on your toes.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Don\u2019t get phished off<\/strong><\/h2>\n\n\n\n<p>Another reason online retailers are at risk is the fact that they\u2019re often part of a bigger supply chain. This opens up a whole new world of opportunity for a cybercriminal.<\/p>\n\n\n\n<p>If you\u2019re on a public Wi-Fi network, you\u2019re more vulnerable to hackers who can easily infiltrate your emails. Then they\u2019ll be able to see all your supplier contact details.<\/p>\n\n\n\n<p>Be wary too of how much private information you share on social media. Cybercrims will scour your accounts to work out possible passwords or answers to security questions and get to your emails that way.<\/p>\n\n\n\n<p>They can then disguise themselves as a supplier you know and trust. A convincing invoice comes your way \u2013 and boom. They\u2019ve got you\u2026 and the hard-earned cash they\u2019ve persuaded you to pay into a bogus bank account. And that\u2019s just one of the simpler <a href=\"https:\/\/www.policybee.co.uk\/blog\/a-guide-to-social-engineering-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">social engineering<\/a> stunts they can pull.<\/p>\n\n\n\n<p>You might think you\u2019d notice a fraudulent phishing email of this type, but those cybercriminals are pretty smart and always evolving. Even the best of us can be fooled.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What does cyber insurance for online retailers do?<\/strong><\/h2>\n\n\n\n<p>Get brought down by a cyber-attack and you\u2019ll have more than one glitch to fix.<\/p>\n\n\n\n<p>Firstly, you\u2019ll have to try and repair the holes in your security. While you\u2019re doing that, you might have to halt business \u2013 no customers, no money rolling in. Then there\u2019s trying to retrieve any lost data, which could be held at ransom. Also, you might have to tell your customers or suppliers the bad news, and then deal with the fallout\u2026<\/p>\n\n\n\n<p>And so it goes on. Easy to see how these situations spiral out of control and end up costing a bomb to rectify. You only need to look at the news headlines to see what a huge financial impact cybercrime has on the industry. The likes of Tesco, JD Sports, WH Smith, and plenty of other retail giants (as well as plenty more smaller ones) have fallen victim.<\/p>\n\n\n\n<p>That\u2019s where <a href=\"https:\/\/www.policybee.co.uk\/blog\/what-is-cyber-insurance-and-what-does-it-cover\" target=\"_blank\" rel=\"noreferrer noopener\">cyber insurance<\/a> comes in. Make sure you add crime cover to your policy, as this is the bit that&#8217;ll cover you for any sort of cybercrime &#8211; social engineering attacks like phishing, or financial fraud. You can also get extra business interruption cover. This pays out for every day that your business can&#8217;t trade due to a cyber-attack.<\/p>\n\n\n\n<p>In the event of a claim, you\u2019ll have access to IT experts. They\u2019ll save your back-end, plus make sure your systems are secure and that customers can use your site safely.<\/p>\n\n\n\n<p>You\u2019ll also have access to legal experts if things get sticky with the <a href=\"https:\/\/ico.org.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">regulator<\/a> or you\u2019re sued for losing people\u2019s personal data. Plus a PR expert to handle a reputation crisis. Some policies will also help you recoup any financial losses due to lost custom or website downtime.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to be cyber-aware<\/strong><\/h2>\n\n\n\n<p>Think of it as a game of cat and mouse.<\/p>\n\n\n\n<p>It\u2019s all very well having cyber insurance as a backup. But it\u2019s even more important that you have all the necessary cyber security in place to try and outsmart cybercriminals.<\/p>\n\n\n\n<p>Stay up to date with the cyber world and the constantly evolving threats that could affect your business. There are some helpful tips in the National Cyber Security Centre\u2019s <a href=\"https:\/\/www.ncsc.gov.uk\/collection\/small-business-guide\" target=\"_blank\" rel=\"noreferrer noopener\">Small Business Guide<\/a>.<\/p>\n\n\n\n<p>Some cyber insurance policies will include cyber security training for you and your staff, which is arguably the best protection for your business and makes the policy worth every penny.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Finding the right cyber insurance for online retailers<\/strong><\/h2>\n\n\n\n<p>When you buy cyber insurance, do your research and study the policy carefully. There are plenty of cheaper deals out there. But be warned \u2013 you get what you pay for. You want to make sure you\u2019re covered for ransomware, social engineering attacks, and business interruption losses.<\/p>\n\n\n\n<p>And don\u2019t forget there are other types of insurance you might need to consider. Take a look at our <a href=\"https:\/\/www.policybee.co.uk\/online-retailers-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">online retailers&#8217; insurance<\/a> for more info.<\/p>\n\n\n\n<p>Click on the link to find out more about <a href=\"https:\/\/www.policybee.co.uk\/cyber-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">cyber insurance<\/a>, or call the team on <strong>0345 222 5391<\/strong>.<\/p>\n\n\n\n<p><em>Image used under license from istock<\/em><a id=\"_msocom_1\"><\/a><\/p>\n\n\n\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Having an online shop rather than bricks and mortar has loads of great benefits. The upfront costs are much less and you can reach a way bigger customer base. You don\u2019t need to hire anyone to man the shop or &hellip; <a href=\"https:\/\/www.policybee.co.uk\/blog\/why-online-retailers-need-cyber-insurance\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[288],"tags":[300,158,284,189],"class_list":["post-23568","post","type-post","status-publish","format-standard","hentry","category-cyber-insurance","tag-cyber-insurance-2","tag-cyber-insurance","tag-gdpr","tag-online-retailers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Why do online retailers need cyber insurance?<\/title>\r\n<meta name=\"description\" content=\"Do online retailers need cyber insurance? The answer is simple - yes! 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