Cyber Insurance
Cyber insurance is a policy that is designed to protect your business from digital threats such as data breaches or cyber hacks on your company’s computer systems. In the digital age that we live in today, all business’s no matter what size rely on technology in some form or another for their activities. If so they will be exposed to the risks of business interruption, income loss, damage management and repair, and potentially reputational damage should their equipment or systems fail or are interrupted. This policy generally covers:
There are no laws requiring businesses to have cyber insurance. However a study carrier out in early 2020 by the UK government concluded that nearly half (46%) of all businesses suffered security breaches or hacks in the previous 12 months, which gets even higher for large businesses (75%). A separate survey undertaken by Hiscox Insurance at a similar time found that the median losses suffered by companies has risen 600%.
This shows the prevalence of cyber incidents is astonishingly high and unlikely to improve as our businesses become more and more reliant upon technology. For most companies now some form of cover against these issues will be essential to provide financial protection.
How much cover required varies from business to business meaning that there is no definitive answer. Your business will require enough cover to weather a worst-case scenario should you experience a cyber attack or breach. We advise discussing this with an insurance broker who can provide you with the information you require to make this decision and tailor the policy to your specific needs.
