Two in three UK firms overlooking computer risks – HSB

Super-regional brokers say overwhelming majority of clients have given little to no consideration to computer risks at all
Two in three UK firms overlooking computer risks – HSB
DIGITAL TRANSFORMATION
By Kenneth Araullo
26 Sep 2023

A recent survey conducted by HSB (UK and Ireland) among insurance brokers indicates that a significant majority of businesses, about 67%, are not adequately considering insurance coverage for computer-related risks stemming from evolving work practices.

The survey reveals that a notable portion of brokers believe their commercial clients haven’t given due attention to computer insurance in the context of hybrid working, with merely 29% thoughtfully considering the associated risks.

HSB’s findings also shed light on differing perspectives regarding computer risks. For super-regional brokers, 76% of their clients indicated they had given either “not very much” or “no” consideration to these risks. Conversely, national brokers noted that 40% of their customers had shown significant consideration regarding the potential risk of their business not being covered for computer equipment.

The specialist insurer emphasised that it is imperative for businesses to thoughtfully manage computer risks, particularly as employees transport computer equipment between home and work premises. Some businesses might not have adequately factored in their insurance policies and the potential risk exposures associated with remote working in the longer run.

Consequences of unaddressed computer risks

A previous survey by HSB earlier this year brought to light that nearly half (46%) of employed and self-employed individuals have experienced losses or damages to computer equipment due to the transition to remote work or commuting to and from the office. This underscores the necessity for businesses to evaluate if their computer equipment is sufficiently covered, aiming to minimise costs and mitigate the impact of damaged or lost equipment.

Further analysis from HSB’s research indicates that brokers opt for a combination of commercial combined, office, and standalone computer policies to address risks. Super-regional brokers most commonly place office policies (62%), while provincial brokers favour commercial combined policies (61%). By contrast, national brokers tend to prefer computer (standalone) policies (60%) to mitigate the identified risks.

HSB cyber product leader Mat Prentice (pictured) said that the findings illustrate that many firms are still unaware of the potential risks to computer equipment.

“With hybrid working seemingly here to stay, businesses should reassess whether their existing insurance policy protects their computer equipment. By providing expert advice, insurance brokers can play a vital role in ensuring businesses have the right level of cover for the modern working landscape,” Prentice said.

Earlier this year, the Munich Re-owned company also announced the appointment of Stacey Sheridan as network relationship manager, further strengthening its broker proposition.

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