What is Cyber Insurance?

What is Cyber Insurance?

We talk to all our clients about Cyber Liability because it's a cover we think that everybody should hold these days.

We know that there can be confusion over what Cyber Insurance covers.  From conversations with our clients, we know that when they think about cyber incidents, they think about attacks coming against them to access their information and steal their data.

Do I need to buy Cyber Insurance?

We thought it would be useful to tell you why WE buy Cyber Liability within our own business.

The reason is this.  We buy it not just because of the cyber incidents or the cyber hacks, but because statistically, at some stage that's inevitable that it will happen. In a survey on Cyber Security Breaches published in March 2021 (see survey here) four in ten businesses (39%)report having security breaches or attacks in the last 12 months.  This is broken down further – among medium businesses (65%) and large businesses (64%) have suffered these breaches or attacks.  The study suggests that the risk level is potentially higher under COVID-19, and that businesses were finding it more difficult to administer cyber security measures during the pandemic.

What happens if we’re the victim of a Cyber Attack?

Our Cyber Insurance cover provides us with access, in the scenario that if it does happen, to a solicitor who will act on our behalf if anybody takes legal action against us for not securing their data sufficiently. 

In the instance that it does happen, we also want somebody else to handle notifying the Information Commissioner’s Office (ICO) on our behalf.  If we've got some downtime, we want the cyber policy to cover our loss of profits. And because we're running a business, we want somebody else to handle the P.R. on our behalf, somebody that can deal with any reputational harm and that makes us sleep a bit easier at night. Should something happen.

How much does Cyber Insurance cost?

The premiums are coming down, so it's much more affordable these days and you can start with limits as low as £100,000, but we can give you guidance on what limit you would set that would be appropriate for your business.

Have you got more questions?

 If you want to know more, or to get a quote on covering your business against a Cyber Attack, please contact Squared Insurance Brokers.