Cyber crime is on the up. And while it is cyber attacks on large corporate businesses that attract the headlines, recent research reveals some incredible statistics about how UK SME’s are targeted and affected:
- 130,000 SME’s in the UK suffered from cyber crime during 2018.
- Nearly two thirds of all UK businesses employing between 10 and 49 staff were targeted by cyber criminals.
- The average cost to a business affected is £65,000.
Technology has come along way, and many business owners and managers still don’t recognise that they could well be affected. In fact, any business that holds, stores or collects customer data – and lets face it, most do these days – could potentially be at risk of a breach or attack.
The insurance industry has responded with a range of policies that can be tailored to suit the risks that an individual business may face.
What does a cyber liability insurance policy do?
A cyber insurance policy, also referred to as cyber risk insurance or cyber liability insurance coverage is designed to help small medium and large businesses to mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event. A cyber liability insurance policy has evolved with technology itself, but its roots in an area of professional indemnity insurance known as errors and omissions.
What is included on a cyber liability insurance policy?
Although there is no standard for underwriting cyber policies or policy wordings policies commonly cover the following:
Investigation: A forensics investigation is necessary to determine what occurred, how to repair damage and how to prevent the same type of breach from occurring in the future. Investigations may involve the services of a third-party security firm, as well as coordination with law enforcement.
Business losses: A cyber insurance policy may include similar items that are covered by an errors & omissions policy (errors due to negligence and other reasons), as well as monetary losses experienced by network downtime, business interruption, data loss recovery and costs involved in managing a crisis, which may involve repairing reputation damage.
Privacy and notification: This includes required data breach notifications to customers and other affected parties, which are mandated by law in many jurisdictions, and credit monitoring for customers whose information was or may have been breached.
Lawsuits and extortion: This includes legal expenses associated with the release of confidential information and intellectual property, legal settlements and regulatory fines. This may also include the costs of cyber extortion, such as from ransomware.
Why use an insurance broker to buy cyber liability insurance?
Buying any type of insurance can be hard work – getting a range of quotes from different providers can be time consuming, and once you have the quotes back it can be difficult to compare cover and be sure you have adequate protection in place without paying more than you need to. Using an independent broker like Buckingham Insurance takes all of the stress – and leg work – away from you. We will take time to understand that types of risk that your business faces and get a range of quotes from our insurance partners. We can even explain the differences and make recommendations. To find out more about cyber liability insurance, why not speak with one of our trusted advisors today?