La Playa offers affordable insurance protection in cyber space for arts organisations.  But why do you need Cyber Liability Insurance? Most arts organisations would agree that data or information is one of their most important assets – it's almost certainly worth many times more than the physical equipment that it's stored upon.  But the risks are not just about data:

1. Your data is an important asset – but it’s not covered by standard property insurance policies
Your data is probably worth much more to you than the physical equipment it’s stored on. Many arts organisations don’t realise a standard property policy wouldn’t respond in the event that this data is damaged or destroyed. La Playa’s Cyber Liability Insurance portfolio policy can provide comprehensive cover for data restoration and rectification in the event of a loss – no matter how it was caused, and up to the full policy limits.

2. Systems are critical to your day to day work – but downtime isn’t covered by standard business interruption insurance. Most arts organisations rely on systems to conduct their core business, from marketing to electronic box office. But traditional business interruption insurance doesn’t cover hack attacks, viruses or malicious employee interference.  Our Cyber Portfolio policy provides cover for loss of income associated with a computer virus or denial of service attack.

3. Cyber crime is the fastest growing crime in the world, but most attacks aren’t covered by standard property or crime insurance policies. New crimes are emerging every day. The internet means that your organisation is now exposed to the world’s criminals and is vulnerable to attack at any time of the day or night. Phishing scams, identity theft, and telephone hacking are all crimes that traditional insurance doesn’t address. Cyber Liability Insurance provides comprehensive crime cover for a wide range of electronic perils that are increasingly threatening the financial resources of arts organisations.

4. Third party data is valuable – you can be held liable if you lose it
We all hold more data than ever before, and often this data belongs to audiences, donors and suppliers.  Contracts and agreements contain clauses around data security that can leave you liable for expensive damages claims in the event of a data breach.  Increasingly, consumers are also seeking legal redress in the event that an organisation loses their data. This risk is even greater if you hold data on US consumers.

5. You could face severe penalties if you lose credit card data
Global credit card crime is costing billions, and increasingly this risk is being transferred to the organisations that lose the data. Under merchant service agreements, organisations can be held liable for forensic investigation costs, credit card reissuance costs and the actual fraud conducted on stolen cards. These losses can run into hundreds of thousands of pounds for even a small organisation.  Cyber insurance can help protect against all of these costs.

6. Complying with breach notification laws costs time and money
GDPR brought with it a raft of new regulation around breach notification, with 72 hour deadlines and hefty fines for non-compliance. These generally require that if you lose sensitive personal data, you provide written notification to the individuals potentially affected.  Customers who have had their data compromised expect openness and transparency from the organisations they entrust it with. Cyber Liability Insurance provides cover for the costs associated with providing a breach notice.

7. Your reputation is your number one asset, so why not insure it?
Any arts organisation lives and dies by its reputation. Although there are certain reputational risks that can’t be insured, you can insure your reputation in the event of a security breach. When your systems have been compromised, you run a risk of losing the trust of your loyal customers – which can harm your business far more than the immediate financial loss. Our Cyber Portfolio policy will not only help to pay for the costs of engaging a PR firm to restore this for you, but also will reimburse you  any loss of current or future income.

8. Social media claims are on the rise
Social media is the fastest growing entertainment channel in the world. Information is exchanged at lightning speed and exposed to the world. But often you have little control over what’s said and how it’s presented – you could be liable for the actions of your employees on sites such as LinkedIn, Twitter and Facebook. Cyber Portfolio  will cover your costs arising from leaked information, defamatory statements or copyright infringement.

9.  Portable devices bring new data risks 
Portable devices and remote/home working mean that important and confidential data can be stolen or lost much more easily. A laptop left on a train, an iPad stolen in a restaurant, or a USB stick going missing are all good examples. In addition, the devices themselves are being targeted with a growing number of viruses being built just for them. Cyber Liability Insurance will cover the costs associated with a data breach following a loss, theft or virus attack on a portable device.

10. Hackers don’t just go after big business – you’re at risk too
Whilst the high-profile hack attacks often involve big companies, small organisations are also at risk and often don’t have the financial resources to get back on track after a hacking attack or other kind of data loss. In fact, over a third of global targeted attacks are aimed at businesses with fewer than 250 employees. Cyber attacks are quickly becoming one of the greatest risks faced by smaller companies, making Cyber Liability insurance a must. It can help protect against the potentially crippling financial effects of a privacy breach or data loss.

Case Study
A UK arts venue had malicious coding inserted into their files from an outside virus attack with the aim of infecting every visitor to their website – despite having suitable firewalls in place. On discovery, the website had to be closed down, a temporary site built – and months later, a permanent one. The costs of the investigation, the temporary and permanent new websites amounted to around £12k. With no Cyber Insurance in place, this was a significant hit to the venue’s finances.