The vast majority of UK businesses use technology to help run their business, therefore the vast majority of UK businesses should have (or strongly consider) Cyber Insurance.
Cyber insurance covers towards losses relating to damages or loss of information from networks and IT systems. A cyber insurance policy could provide financial assistance and management following a cyber-attack, covering a wide range of costs, from the restoration of computer systems to loss of income.
Cyber-crime is by far the biggest threat to both small and large businesses, and the fastest growing crime in the UK, as anonymous criminals can attack from all parts of the world.
Cyber Liability can cover towards the costs involved with:
- Restoring or replacing data and IT equipment
- Informing and compensating clients of a data breach
- Loss of revenue and net profit
- Legal costs of defense and compensation
It’s important to understand that its not just hackers who are threats to your business’s data.
Human error can also play a big part; most employees have laptops and mobile devices nowadays, which can easily be left on public transport, in a taxi or stolen from their home or car. That would also expose your business, employee and client data to cyber crime – and cyber insurance could help protect against this.
Employees can also be threats to your company and can expose your business to risks. For example, a hacker can send out an email that looks quite realistic and they click on the link which then puts a virus on the company network. Or a hacker can be an imposter of your IT company and your employees gives them remote access to their working device which has access to customer personal information, systems, company information and much more.
What types of cyber insurance are there?
First Party Insurance
First-party cyber insurance covers towards your business’s own assets. This policy pays towards direct and indirect costs if you lose money, data, software, intellectual property or customers to cybercrime – either from the direct attack, or from the business downtime and reputational damage it causes. It can also cover the cost of response efforts, such as setting up an emergency call center to notify your customers of the breach up the policy limit.
Third Party Insurance
Also known as cyber liability insurance, can provide cover towards the assets of others, e.g. your customers. For example, hackers may steal customer information, damage their data, block their accounts, or tamper with their profiles and websites. Like any liability insurance, third-party policies can provide cover towards the costs you’re legally to pay, including those related to the investigation, legal defence, civil damages and compensation.
A major incident could virtually bring your company to a standstill, with major losses of revenue and threat of further legal action which could bring a business to its knees.
Get a Cyber Insurance Quote Today
Please get in touch with Insurance Connections to learn more about Cyber Insurance and to obtain a no-obligation quotation. Call our team on 01270 449 449 or complete our enquiry form.