Cyber Risk Insurance
What is cyber protection and data insurance and how can cover your company in the digital age
Get indemnity™ cyber protection
An expert guide to cyber protection and how to insure your company's legal liabilities and expenses
As a company operating in the modern world, you have an exposure to cyber liabilities from third parties and an exposure to expenses that you incur as the result of a data breach or cyber attack.
As a Willis Towers Watson Network broker, we are cyber insurance risk experts and can offer guidance on the minimum controls insurers now require. With increasing frequency and severity of claims paid, making sure you have adequate security is paramount.
What you need to know about cyber liability insurance
Ensure your company is protected from malware, ransomware, denial-of-service attacks with cyber liability insurance. The below explainer guide offers an insight into the different types of cover available.
Third-party liabilities and first-party costs as a result of a data breach or cyber attack can be very expensive. Ensure you understand what cover is available and the incident response services that can assist should your company need them.
What is cyber insurance?
Cyber insurance offers valuable financial protection and technical assistance in the event of an attack or data breach. Acting fast to mitigate the damage, reduce costs and meet ransomware demands can make all the difference.
If your company holds confidential, customer or employee data, publishes electronic content, transacts business over the internet, or uses service providers for processing information, you should purchase cyber liability insurance.
Each company is responsible for their own security and having cyber protection to guard against third-party liabilities and first-party costs has become common practice. Below we explain how cyber protection can protect your interests.
What malicious breaches are covered under cyber and data insurance?
Malicious breaches by third-parties or employee actions, whether deliberate or not, can unfortunately negate the security measures your company has in place.
> Malware breach
Malware or malicious software designed to cause damage can exploit vulnerabilities, which allows the criminal to record your activities.
> Ransomware breach
Ransomware breaches lock you out of your system, the perpetrator will then demand a ransom in exchange for control and not to release sensitive data.
> Denial-of-service
A denial-of-service attack seeks to render a system or server unavailable, typically overwhelming a targeted machine with requests.
What types of cyber coverage are available?
The below guide looks at the different types of cyber coverage available and how they can protect your business from 3rd party liabilities and 1st party costs:
What is cyber liability insurance?
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 cover can offer protection from failure to prevent an individual's data being breached or transmission of harmful malware to a third party.
What is cyber extortion insurance?
Cyber extortion insurance provides cover responding to fraudsters attempting to extort money by threatening to carry out an attack or threatening to expose/destroy data having already compromised the network.
What is incident response and notification?
Incident response and notification provides access to cyber specialists to mitigate the damage of security and privacy breaches. The cover can include IT security, forensic investigation, legal advice, and the costs associated with notifying any individuals.
What is business interruption insurance?
Business interruption insurance provides cover for the subsequent loss of profits and increased costs because of a security or data breach.
What is media liability insurance?
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.
What is system damage insurance?
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 an attack, often critical in getting the company operating again.
What is regulatory fines insurance?
Regulatory fines insurance provides cover for fines and penalties imposed by a government or regulatory body because of a security and data breach, where permitted by law.
What cyber security risks can insurance policies offer protection against?
In an ever-changing world cyber protection can offer cover for first-party costs and third-party liabilities from a wide range of cyber risks including:
> Professional hacker security risk
Professional hackers target companies for monetary gain, where hacktivists can interfere with operations. Espionage of intellectual property remains is a real cyber security risk and is becoming increasingly common.
> Connection failure security risk
If a communication line goes down this can impact customers, partners, supply chain management and remote maintenance. Companies depend on their customers and must protect IT facilities where sensitive and confidential data is located.
> Credit card fraud security risk
Gaining access to credit card data is a quick win for cyber security criminals. Companies are liable for the non-disclosure of such data and can be held accountable for financial losses.
> Employee security risk
Employees can easily create outages (intended or unintended) or cause data leakages. Improving employee awareness of the cyber security risks involved is crucial.
> Just-in-time security risk
Critical in today’s just-in-time companies. This is mostly managed by internet-connected interfaces which can be easily hacked.
How do insurers calculate your cyber insurance cost?
Get indemnity™ cyber coverage starts at £323 annually or £26.91 per month for a £1 million limit for a variety of threats with a response hotline, technical advice, legal input, and forensic experts.
Insurers are confronted with several challenges in attempting to accurately price your cyber insurance cost. The diversity of exposures from different business activities, technological advances and increasing sophistication of criminals represents an increased challenge.
Cyber policy premiums can therefore vary because the risk assessment is subjective. Ensure your company is protected and compare quotes from the wholesale market by giving us a call on 0345 625 0711 to discuss your requirements.
Why your business needs cyber insurance coverage?
With an increasing reliance on technology, all businesses need cyber insurance coverage, which includes first-party costs, third-party liabilities, and access to cyber specialists.
> First-party costs
Cover for costs incurred by the company, that can include IT security, forensic investigation, legal advice and notification expenses.
> Third-party liabilities
Cover for legal expenses incurred in defending allegations and pay damages from any award by a court or agreed settlement.
> Cyber experts
Incident response cover can provide access to cyber experts to mitigate the damage of security and data breaches.
Cyber Protection FAQs
What is first-party cyber cover?
First-party cyber cover provides for financial losses and costs incurred by the company. 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.
What is third-party cyber liability cover?
Third-party cyber liability cover provides for financial losses and expenses 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.
Do we need a cyber policy if we have good security?
Security is unfortunately not full proof, especially in an ever-changing environment. It is commonly accepted that attacks and security breaches are increasing in frequency and sophistication. Good security is increasingly being combined with an insurance policy to ensure financial protection and access to cyber experts.
What is social engineering fraud?
The manipulation of employees to bypass digital security is on the rise and is more commonly referred to as social engineering fraud.
What is cybercrime insurance?
Cybercrime insurance offers financial protection from a criminal or fraudulent taking, obtaining or appropriation of money, securities, or property.
How to compare cyber protection quotes?
Ensure your company is fully protected and compare cyber protection quotes from the wholesale market by completing our digital onboarding process or give us a call on 0345 625 0711 to discuss your requirements.
Can you provide some cyber security breach statistics?
This sixth survey by the UK government in the annual series continues to show that cyber security breaches are a serious threat to all types of businesses and charities. Four in ten businesses (39%) and a quarter of charities (26%) report having cyber security breaches in 2021.