Cyber liability insurance is a hot topic. If you have read any recent news headlines you will be aware of the ongoing cyber attacks to companies worldwide. Just take the case of British Airways in which hackers managed to breach the company’s website and app, stealing data from approximately 380,000 BA customers. BA is a large global corporation with high-level cyber security protection, however, this case demonstrates how vulnerable a company of any size is to the risk of cyber attacks. Cyber security threats are rapidly evolving, therefore it is essential you keep your business protected and insured against the potential risks.
Why do businesses need cyber liability insurance?
For the third year running of the UK Government Cyber Security Breaches Survey 2018, the survey has highlighted the importance of cyber security, with over two in five businesses (43%) identifying breaches in the last 12 months. This makes it clear just how important it is for businesses operating in the digital arena to address this threat head-on. It is especially imperative for small businesses as it has been estimated by Silicon UK that half of all SMBs in the UK could be hacked in under an hour.
As important as it is to protect your business against cyber attacks, it is just as crucial to ensure your business against potential breaches. Thus, the only way to become cyber secure is through the implementation of cyber liability insurance. A cyber security breach could cost you business millions as companies now face hefty fines from the GDPR and expensive legal settlements in cyber liability cases – this is not to mention the immense reputation damage a cyber security breach can cost!
Do not let yourself believe that this is a problem that only large companies face, SMBs now need cyber liability insurance as cyber threats become increasingly sophisticated in today’s tech-driven society. Your business will be in special need of cyber liability insurance if you…
- Collect card payment information from internet sales
- Hold a database of personal customer information including names, addresses or banking information
- Store employee data digitally
- Operate on a heavily technical basis, using digital mechanisms for daily operations such as email or complex computer networks
What is cyber liability insurance?
A cyber liability insurance policy essentially covers the losses relation to damage to, or loss or information from IT systems and networks. If your network was to be compromised by a cyber attack you could be exposed to business interruption, income loss, damage management, and repair and so on – cyber liability insurance protects you against the fallout from these consequences. Insurance, therefore, offsets the expenses of a data breach ensuring any costs are subsidised by your insurer.
What can cyber liability insurance cover you for?
Every companies cyber liability insurance cover is different and tailored to the size, scale, and nature of each business. However, generally cyber liability insurance covers you for…
First-party insurance cover…
- Loss or damage to digital assets such as data or software programmes
- Business interruption from network downtime
- Cyber exhortation where third parties threaten to damage or release data if money is not paid to them
- Customer notification expenses when there is a legal or regulatory requirement to notify them of a security or privacy breach
- Reputational damage arising from a breach of data that results in loss of intellectual property or customers
- Theft of money or digital assets through theft of equipment or electronic theft
Third-party insurance cover…
- Security and privacy breaches, the investigation, defence costs and civil damages associated with them
- Multimedia liability, to cover investigation, defence costs and civil damages arising from defamation, breach of privacy or negligence in publication in electronic or print media
- Loss of third-party data, including payment of compensation to customers for denial of access, and failure of software or systems
Evidently, the benefits of cyber liability insurance are extensive and getting the right cover for your business can give you as a business owner peace of mind that you are covered and protected. In many ways, the cost of the insurance policy will greatly outweigh the cost of a potential risk of a cyber attack and whatever your budget you can find a policy to fit your needs. Here at Todd and Cue Insurance, we work in conjunction with our partners Wriggle Security to protect your company and provide you with cyber liability insurance. If you are interested in our services please do not hesitate to contact one of our insurance brokers today, they will be more than happy to assist you and your business stay cyber aware!