• Cyber Insurance

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:

  • Business Interruption from network down time
  • Reputational damage caused by a breach of data that results in the loss of customers or intellectual property
  • Theft of money or digital assets
  • Customer notification expenses occurred for both legal and regulatory requirements to notify of breaches
  • GDPR claims

Who Needs Cyber Insurance?

Cyber Insurance is suitable for businesses of all sizes that rely on technology, store sensitive information or conduct business online. While many people assume cyber attacks only affect large organisations, small and medium-sized businesses (SMEs) are increasingly being targeted due to their valuable data and, in many cases, fewer cyber security resources.

If your business uses computers, email, cloud-based software or stores customer or employee information electronically, Cyber Insurance can provide valuable protection against the financial and operational impact of a cyber incident.

  • Small and medium-sized businesses (SMEs)
  • Online retailers and e-commerce businesses
  • Professional service providers
  • Healthcare providers
  • Construction and engineering firms
  • Manufacturers
  • Hospitality businesses
  • Businesses that accept card payments
  • Companies with remote or hybrid employees

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.

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