Cyber insurance is designed to help your business offset the costs of recovery after a cyber-related security breach or similar event. A comprehensive cyber policy will cover you for the direct costs and liability to third parties following a cyber-attack.
However, policies often exclude financial or asset losses following an attack (such as funds taken from your account). We recommend clients to consider both a cyber and crime policy for fully comprehensive protection.
of business experienced a cyber-attack in the last 12 months
is the average cost to businesses of a data breach
lost to UK businesses as a result of employee fraud
Insurer’s policy wordings vary and the areas of cover included in cyber and crime policies can overlap. Tysers brokers will help your business identify a cover combination to suit your operational needs.
A sample of the key areas of cover often included in a Cyber policy
There are numerous Cyber products available to our broking team and each policy is different. We will search the market on your behalf and identify the product that best meets the needs of your business in terms of both cover and value. The key covers in cyber risk policies are detailed below. Click the arrows to see examples illustrating the purpose of each area of cover.
Covers Information Security and Privacy Liability; costs provided may include forensic costs, legal fees (defence costs and costs of liability claims resulting from the loss of intellectual property and/or a breach of confidential information) and the cost of data subject notification.
Just two simple examples of situations which may give rise to a claim:
By selecting the wrong spreadsheet, an employee could inadvertently distribute personal, sensitive data, thus breaching terms of privacy.
By accidentally leaving a laptop on a train, employees’ or customers’ personal, sensitive data could be compromised.
Both are examples of data breaches and could result in financial claims being brought by third parties against your business
Covers may include loss of income, reputational damage, increased costs of working and outsourced service provider interruption.
The following scenario provides an example which could give rise to a claim:
An attack on your hosting service provider which disables your business website and causes you to lose business. Business interruption cover will help you recover your losses.
If your system is hacked as a result of an unidentified vulnerability and data is stolen, you could be accused of not effectively managing and suitably protecting your network and individuals’ or businesses’ data. Insurance will protect you against the cost incurred. Protection may also include any damage to computer systems and programmes or corruption or loss of data.
‘Ransomware’ is a type of software often used to extort money from businesses. Systems are blocked and access to data is hindered until a ransom is paid. Insurance can help protect your business against this growing threat. Fees for the support of expert negotiators and payment of any required ransom demand may be covered by policies.
Data is one of the most valuable assets a company can have. You can protect your business against loss of data or the costs associated with re-keying and/or restoring data by purchasing appropriate insurance cover that guards against data asset loss and data restoration – including decontamination and recovery.
An internal email is errantly released to an external individual. It contains negative comments about a third party organisation. Action is taken for defamation by the third party against your business. Media Liability is designed to help cover the costs.
Cover can include the cost of employing legal, IT and Public Relations services. A Public Relation company to manage and minimise the reputational risks of your brand in the event of a data / security breach or cyber-attack.