Cyber insurance is a specialised form of cover which seeks to help protect businesses against, or aid in their recovery following a cyber related event. This can include hardware failure and data breaches as well as cyber-crime itself.
All businesses which use IT are at risk to cyber events and the risks are not limited to the size or type of business either. If you are an SME the risks can actually be even greater as you may not have the ability or capacity to deal with the loss of hardware as well as data.
Depending upon the level of cover chosen, cyber insurance has the ability to protect you from numerous issues which include but are not limited to:
- Hardware failures
- Data loss/corruption
- Cyber liability
- Data breach expenses
Why is cyber insurance important?
In May 2017, a global cyber attack using hacking tools crippled the NHS, hit international shipper FedEx and infected computers in 150 countries. More than 300,000 computers were infected by the WannaCry ransomware and the attack received front-page coverage catapulting cyber security into the mainstream. Although this attack was large-scale, cyber crime isn’t exactly new. It has been increasing in frequency for several years, to the point that no one can now afford to ignore the possibility of being hacked.
Who needs cyber insurance?
Cyber security and information protection affects companies of all sizes, and hackers are not the only threat. Businesses all rely on information technology (IT) infrastructure to some degree and are therefore exposed to the potential risks of cyber-crime and the resulting impacts - business interruption, income loss, damage management and repair, and possibly reputational damage. For SME’s this could be crucial, as they are less likely to have the resources or capabilities to deal with a cyber event.
While existing insurance policies such as commercial property, business interruption or professional indemnity insurance may provide some elements of cover against cyber risks, businesses of all sizes are increasingly looking for specialised cyber insurance policies to supplement their existing insurance arrangements.
What does cyber insurance cover?
Cyber insurance is designed to offer protection from cyber risks which could be damaging to a business and its reputation, such as data recovery following a hardware failure or full scale data breach.
Key considerations for businesses when choosing cyber insurance are whether the policy provides:
- Cover for the costs of dealing with data breaches
- Cover for the costs of dealing with cyber liability claims
- Cover for business losses from a cyber event
- Cover that helps businesses deal with the impact of cyber crime
- Cover for hardware and data corruption
- Access to expert advice and support e.g. IT, legal, forensic and media relations when an incident occurs
Why choose constructaquote for your cyber insurance?
- Over 26,000 businesses have already entrusted us to arrange their business & professional insurances
- Cyber insurance is available stand-alone, or can be combined with other key business insurance policies
- Since 1990, we've been helping small businesses find the cover they need to keep working
How do I get a quote for cyber insurance?
To find out how cyber insurance can support your business, and for a no-obligation quote, please contact us today.