A Guide To Cyber Insurance
We now live in a digital world. Whilst shopping, communicating and managing our lives online offers us real opportunities, it has led to a new type of crime. According to the BBC, the UK tops the charts the most money spent online per household. This new landscape has given the most technical criminals access to all our most sensitive information. In this blog, we want to outline the 3 main types of cybercrime and why cyber insurance makes sense.
- Theft of funds: Straightforward theft from a individuals or company bank accounts is by far the most common form of cybercrime.
- Theft of data: Identity theft has reached an all-time high in the UK. Data is valuable when you have access to names, emails, and purchase history.
- Damage to digital assets: Companies rely heavily on digital channels to operate. From payments systems to CRM databases, or even their websites. Hackers use these assets to blackmail business owners into paying ransoms.
The importance of cyber insurance
With the increased risk of cybercrime, businesses simply cannot ignore the dangers. Cybercrime costs the average business in the UK £27,000, according to Lloyds Banking Group. What is your website was seized and deleted, if your customer data was stolen or your business was comprised without your knowledge, and now you’re liable to pay fines? How would this affect your business? Cybercriminals are sophisticated. They are very good at making your negligible – and therefore, you cannot reclaim lost cost from your bank.
Get Cyber Insurance
Cyber insurance is typically broken down into two main policy categories called ‘first party’ and ‘third party liability’. We will now outline some of the main features of each policy and how they can be used to help insured businesses minimise their losses.
FIRST PARTY COVER
First party section covers the insured businesses own financial losses that result from a cyber-attack.
- Incident Response: This will cover the real costs involved in responding to a cyber-attack in real time such as IT support, legal advice and the cost of having to notify any affected individuals.
- Cyber Extortion: This covers the costs involved with dealing with fraudsters attempting to extort money from a business via cyber-attack, or threats to destroy data after a system has already been compromised.
- System Damage: This covers the costs of restoring a business’s data and digital assets following an attack. This could mean replacing computers, new software’s and repairing damaged programmes.
- System Business Interruption: This cover aims to reimburse a business with the profits they have lost because of dealing with a cyber-attack or event.
THIRD PARTY COVER
Third party cover covers an insured business against liability claims made against them.
- Network security and privacy liability: This covers third party claims arising from a cyber event. Maybe an attack has transferred harmful malware to a third party’s system or the attack has meant you have been unable to protect individual’s data.
- Regulatory Fines: This covers any costs that may arise from certain fine and regularity bodies. Taking GDPR as an example, if you lost customer data, this policy would cover any fines from the Information Commissioners Office.
- Media liability: This covers any third-party claims arising out of defamation or infringement of intellectual property rights.
Get a cyber insurance quote
We work with the biggest and best brands in the UK who offer a wide range of cyber insurance policies to protect each business. Our in-house team of insurance experts will talk to you to understand the needs of your business. Get a quick quote today or request a call back from one of our experts!Back to blog