Welcome to the final Instalment of our blog series, Local Council Insurance – Risk and Responsibilities. I’m Kevin Millard, Client Director for Gallagher Insurance, and today we’ll explore one of the most pressing risks facing councils today: cybercrime. As digital threats grow in sophistication, it’s essential for councils of all sizes to understand the risks and take proactive steps to protect themselves and their communities.
Blog series
- Insurance Risk and Responsibilities (Part 1 of 4) ‍
- Public Liability (Part 2 of 4)‍
- Employee Liability (Part 3 of 4)‍
- Cyber Security Insurance (Part 4 of 4) - this blog
Disclaimer:
While I have extensive experience in insurance and risk management, I am not a risk management specialist. Gallagher has a dedicated team of experts, and there are health and safety specialists across the country who can assist with your policies and risk assessments.
If you’re unsure about any aspect of your risk management or need a second opinion, I recommend consulting these professionals. They can review your documentation to ensure compliance with the latest legislation and address any overlooked areas.
Why Cybersecurity is Essential for Councils
No council is too small to be a target for cybercriminals. Councils manage sensitive data, oversee financial transactions, and rely on digital systems, making them attractive to scammers and hackers. Cyber incidents often exploit human error through social engineering, where individuals are tricked into compromising systems.
Common Cyber Threats:
- Phishing and Social Engineering: Fake emails impersonating senior staff to trick recipients into transferring money or sharing sensitive information.
- Invoice Fraud: Hackers intercept genuine invoices, altering payment details to divert funds.
- Ransomware Attacks: Locking systems or data until a ransom is paid.
- Denial of Service (DoS): Disrupting operations by overwhelming systems with traffic.
- Backup Failures: Preventing access to backups, making data recovery impossible.
Real-Life Example:
A council suffered financial loss after scammers intercepted an email and altered payment details for a community project. This not only caused financial harm but also damaged the council’s reputation.
What’s at Risk?
Councils handle a range of data and systems, all of which are vulnerable:
- Personal Data: Resident records, allotment applications, or sensitive community information.
- Financial Transactions: Payments for services or funding allocations.
- Public Websites: Vital for sharing council updates and maintaining transparency.
Even councils with limited resources can be targeted, particularly if they rely on personal devices or outdated security systems.
Prevention Strategies for Councils
1. Use Commercial-Grade Security Software
Ensure robust firewalls, antivirus, and real-time threat detection are in place. Personal devices and free software are inadequate for council operations.
2. Train Staff and Councillors
Most breaches occur due to human error. Regular training can help staff recognize phishing attempts, avoid suspicious links, and follow cybersecurity best practices.
3. Conduct Regular Cyber Risk Assessments
Engage professionals to identify vulnerabilities and recommend improvements. A thorough assessment can prevent future breaches.
4. Implement Backup and Disaster Recovery Plans
Regularly back up council data and test recovery plans to ensure systems can be restored quickly after an incident.
5. Monitor and Update Systems
Keep all software up to date, and monitor systems for unusual activity that may indicate a breach attempt.
How Cyber Insurance Can Help
Cyber insurance offers essential support to councils facing a cyber incident. Key features of a good policy include:
- Data Reinstatement: Recovering lost or corrupted data.
- IT Forensics: Identifying the cause and scope of the breach.
- Public Relations Support: Managing communications to protect the council’s reputation.
- Operational Expense Coverage: Addressing business interruption costs, such as temporary staff or alternative systems.
- Legal Defence Costs: Protecting against claims from third parties for damages, like malware transmission.
Emerging Trends in Cyber Insurance
Some policies now include cyber risk monitoring, offering active oversight of your council’s digital environment. This proactive approach helps identify vulnerabilities before they lead to incidents.
The Cost of Cyber Incidents
Beyond financial loss, cyberattacks can severely harm a council’s reputation. A breach of sensitive data or failure to secure systems can erode public trust, making recovery even more challenging.
Conclusion
Cybersecurity is no longer optional for councils—it’s a necessity. Combining proactive measures with a comprehensive cyber insurance policy ensures your council is equipped to prevent attacks and recover swiftly if they occur.
Thank you for joining me throughout this blog series, Local Council Insurance – Risk and Responsibilities. I hope these insights empower your council to navigate the complexities of risk management confidently and effectively.
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Need a Hand? I’m Here to Help!
I know this can all feel a bit overwhelming, but don’t worry—that’s what I’m here for. Whether you’re unsure about your council’s insurance needs, need advice on risk assessments, or just want to chat about how to protect your community, I’m happy to help.
📞 Call: Kevin J Millard Cert CII – 07458 124847
📧 Email: Kevin_millard@ajg.com
Drop me a message or give me a call—let’s make it simple together!
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