Cyber insurance is a modern policy that offers financial protection and specialist support against cyber attacks and data breaches. It can cover both costs incurred by the business and compensation claims.
If your business holds confidential, customer or employee data, publishes electronic content, transacts business over the internet, or uses service providers for processing information, you shoulder buying the cover.
Each business in responsible for their own cyber security and utlising cyber insurance has become common practice for companies operating in the modern world. Below we explain how cyber insurance can protect your business.
Get indemnity™ cyber insurance
In an increasingly digital environment, technology has created many opportunities and threats. Cyber insurance can offer protection against the financial costs and potential liabilities arising from a cyber attack or data breach.
There are a variety of different covers available, below we provide some background and explain how a cyber policy can protect your business against financial losses and costs in the event of a cyber attack.
To compare cyber insurance quotes from the wholesale market with get indemnity™, please complete our digital onboarding process or give us a call on 0345 625 0711 to discuss your needs.
How much does cyber insurance cost?
Get indemnity™ cyber insurance starts at £323 annually or £26.91 per month and can offer cost effective protection against a variety of threats with a response hotline, technical advice, legal input and forensic experts.
The business insurance can offer valuable financial protection and technical assistance in the event of a cyber attack or data breach. Acting fast to mitigate the damage, reduce costs and meet ransomware demands can make all the difference.
The potential impact of a cyber attack will often depend on the opportunities presented to the attackers and their motivation. Ensure your business is protected and secure the best cyber insurance protection by arranging a call back.
Who needs cyber insurance?
All businesses, no matter what their size or industry could benefit from having a cyber policy in place. With an increasing reliance on technology, businesses will typically hold more sensitive data and are increasingly dependent upon their IT systems.
Preventing and detecting a cyber attack at the earliest opportunity will limit the potential damage the attackers can cause. How you respond within the first 48 hours after the event can have a significant impact on the total cost of a malicious attack.
Today more and more cyber insurance policies offer access to specialists that can assist with getting your systems up and running again and mitigate the potential damage of a cyber breach or attack.
What types of cyber insurance are available?
Below we take a look at the different types of cyber insurance available and how they can protect your business. Note not all policies will provide all of these insuring clauses because each insurer's policy is different, however most are comparable under the below headings:
Cyber liability insurance provides cover for your legal liability for damages and defence costs from third party claims arising from a data and privacy breach. The cyber cover can offer protection from failure to prevent an individual's data being breached or transmission of harmful malware to a third party.
Cyber extortion insurance provides cover for the costs in responding to fraudsters attempting to extort money by threatening to carry out a cyber attack or threatening to expose/destroy data having already compromised the network.
Incident response & notification
Incident response and notification provides access to cyber specialists to mitigate the damage of security and privacy breaches. Cyber insurance can include: IT security, forensic investigation, legal advice, and the costs associated with notifying any individuals their data was stolen.
Business interruption insurance provides cover for the subsequent loss of profits and increased costs of operating as a result of a security and data breach. The cyber cover will typically respond in a similar way to traditional business interruption, but in response to a cyber event.
Media liability insurance provides cover for your legal liability for damages and defence costs from third party claims arising from infringement of any intellectual property rights. Including libel, slander or defamation via an electronic platform.
System damage insurance provides cover for the costs of data and applications to be repaired and restored in the event computer systems are damage from a cyber attack, often critical in getting the business operating again.
Regulatory fines insurance provides cover for fines and penalties imposed by a government or regulatory body as a result of a security and data breach, where permitted by law.
Malicious attacks and cyber insurance explained
Cyber insurance means your business is better protected from a range of malicious cyber attacks, including but not limited to:
Cyber threats can arise from malware or malicious software designed to cause damage to a computer or server. They can install themselves and exploit software vulnerabilities, which allows the cyber attacker to record your activities and steal confidential data.
Ransomware is malware that attacks your system and encrypts data, effectively locking you out of your own system. The cyber attacker will then demand a ransom in exchange for the return of the data and control of your system. The Extortion section under a cyber insurance policy can cover for the costs in responding to fraudsters.
Cyber threats can arise from denial-of-service (DoS) attack which aims to render a system and/or server unavailable. DoS attacks typically function by overwhelming a targeted machine with requests until normal traffic is unable to be processed. Cyber Business Interruption can cover for the subsequent loss of profits and increased costs of operating.
Employee mistakes, deliberate actions or their manipulation, can easily negate your cyber security measures. Cyber cover offers early assistance from specialists to mitigate the damage, and protection against loss of profits and increased costs of working.
How do insurers calculate your cyber insurance cost?
Insurers are confronted with a number of challenges in attempting to accurately price your cyber insurance cost. For example, the diversity of exposures from different business activities, technological advances and increasing sophistication of criminals.
Therefore, the pricing and cyber coverage that underwriters are capable of offering is highly subjective and heavily dependent on an underwriter's individual assessment. Below are key considerations when underwriters review your submission:
The allocation of turnover between different business activities and the perceived exposure attaching to each will impact your cyber cost.
The quality of controls to mitigate a risk and the amount / type of data you collect, and store will impact your cyber cost.
Approximately how many individual GDPR Personal Data records do you hold?
What percentage of the above records do you hold banking or credit / debit card information?
Are you Payment Card Industry (PCI DSS) compliant? If 'Yes' please confirm your PCI merchant level.
Are your employees trained in physical and electronic data security?
Do you maintain firewalls, antivirus software and encryption tools?
The size and scope of an applicant's activities territorially, typically an international exposure will increase your cyber cost.
Frequency and severity of claims with a lack of remedial action, will indicate a lack of quality risk management and systemic issues.
What does cyber insurance cover?
In the event of a cyber attack or data breach, cyber insurance will typically provide for both first-party and third-party financial losses and costs:
First-party insurance provides cover for financial losses and costs incurred by the business. The cover can include the cost of IT security, forensic investigation, legal advice, costs associated with notifying any individuals their data was stolen, cyber extortion, system damage, regulatory fines and subsequent loss of profits and increased costs of operating as a result of a security and data breach.
Third-party insurance provides cover for financial losses and costs that result from claims against you. The cover can include legal costs incurred in defending allegations and pay damages from any award or settlement arising from a security or data breach and arising from infringement of any intellectual property rights. Including libel, slander or defamation via an electronic platform.
Why choose get indemnity™ as your cyber insurance broker?
We are proud to be experts in the cyber insurance market and are happy to field any enquires you may have. If you would like to talk with a specialist insurance broker, please contact us on 0345 625 0711.
At get indemnity™ we work with a number of cyber insurance companies, please complete our online application and we'll contact you directly. For small to medium sized companies, we can typically provide quotes within 24 - 48 hours.
Many policies available today will provide response services to mitigate the damage caused, whilst offering a range of financial protections for your costs and legal liabilities which we discuss below.
Do we need insurance if we have cyber security?
Cyber security is unfortunately not full proof, especially in an ever-changing environment. It's worth noting that cyber attackers can lay dormant for years until they identify a means to achieve what they want.
It is commonly accepted that cyber attacks and security breaches are increasing in frequency and sophistication. AIGs Cyber Report identified their largest cause of cyber insurance claims were a series of systemic malware and ransomware attacks (i.e. WanaCry attack).
Malware, ransomeware demands, denial-of-service attacks and rogue employees can cause significant damage to your business. Cyber security is increasingly being combined with insurance to ensure financial protection and access to specialists.
Companies that have a high cyber crime exposure:
Cyber crime is particularly prevalent at: Accountants, Call Centres, Collection Agencies, Casinos, Data Aggregators, Education Sector, FCA Regulated Firms, Hospitals, Hotels, Payroll Services, Professional Services, Restaurants, Solicitors, Telecommunications, Telemarketing, Trading Platforms, Online Gaming, and Payment Card Processors.
Cyber insurance definitions, terms and conditions
It's worth noting that each insurer's cyber insurance definitions, terms and conditions will vary. Some insurers have recently sought to combine the covers available under cyber and crime insurance, typically referred to as cybercrime insurance.
We work with many different insurers, therefore we can identify different options to meet your requirements. To discuss your needs with one of our specialist account executives, please arrange a call back.
A cyber policy means your business is better prepared from malicious attacks to your systems, network and servers. Compare cyber quotes with get indemnity™ by completing our digital onboarding process.
Cyber insurance comparison
Ensure your business is fully protected and compare cyber insurance quotes from the wholesale market by completing our digital onboarding process, or give us a call on 0345 625 0711 to discuss your requirements.
Some businesses are required to purchase minimum amounts of cyber liability to meet contractual requirements. Speak with one of our Account Executives to see whether you work in an industry where we can combine your cover with professional indemnity insurance.
If you've had cyber claims or work in an industry that is perceived as carrying a high hazard exposure, your insurance broker should engage with you early to ensure you achieve a satisfactory renewal.