ITC Guest Blog: What is Cyber Insurance?

Cyber Insurance, commonly known as Cyber Liability Insurance is a product to support and protect your business in the event of a Cyber Breach or malicious Cyber attack and Cyber Crime protects you should you be deceived into transferring money such as Phishing or incidents such as telephone system hacking.

You are 9 times more likely to be a victim of cyber crime than burglary

2018 UK Government survey found 43% of businesses and 19% of charities reported cyber breaches in previous 12 months

Does my business need Cyber Insurance cover?
Does your business:
• Hold customer/staff details such as names addresses, bank details
• Use computers to operate
• Have a website
• Take card payments
• Store Data in the Cloud
• Make Electronic Payments

If the answer is Yes to any of the above then you DO need cover!

Even with the best IT security, you are still vulnerable to attack and no manner of IT security can mitigate human error. 1 in 3 UK small businesses have already fallen victim to Cyber-crime and this number is only going to increase, you should therefore protect your money, reputation, disruption to business and regulatory fines that could be imposed. A data breach could be caused by a hack of your systems or website but it is a wider issue than that, breaches could just be caused by a ‘stupid mistake’ such as an unencrypted laptop or memory stick containing personal information being left on a train or the failure to properly dispose of confidential waste containing personal information which then turns up on a rubbish tip?

The number of businesses reporting cyber incidents has risen from 43% last year to 61% in 2019. The frequency of attacks has also increased with average losses associated with all cyber incidents rising from £180,000 last year to £291,000 in 2019.

What does Cyber Insurance cover?

Each product varies but a typical policy will cover:
Breach Costs, Cyber Incident Response, Client Notification and Credit Monitoring, Regulatory Costs, Forensic Costs, Hacker Damage, Business Interruption, Reputational Harm, Privacy Liability, Extortion, IP rights infringement, Defamation, Property Damage.

If Cyber Crime cover is also selected this would cover theft of funds, social engineering, phishing, fund transfer fraud, telephone hacking, corporate identity theft.

Don’t leave it to chance and think it will never happen to you. Be prepared and contact
Wrightsure Performers Insurance now for full details and a no obligation quotation.

Tel: 01708 860999