Cyber Insurance Cover Includes:

What does our cyber insurance policy cover?

So let’s take a look at what our typical cyber insurance policy covers plus what is not included in the coverage.

Your organisation’s assets

1. Any damage to software, websites and data

2. A breach response that includes legal advice, forensic experts, notifying your affected clients, plus offering identity fraud and/or credit monitoring services

3. Extortion – if a hacker holds your business to ransom threatening to reveal some sensitive data, the policy will cover ransom payment or recovery costs.

4. Loss of revenue due to a malicious attack, extortion or a data breach on your IT systems or your outsourced IT or data provider

5. Additional expenses to reduce the reduction in revenue. This could be the cost to hire extra staff or equipment

6. Costs of notifying customers of a data breach

7. Loss of the business money due to an external hack into your IT network or by Social Engineering fraud

8. The cost of unauthorised telephone calls and charges made by an external hacker

9. Protection against a breach of Data Protection Regulation where insurable by law. This includes cover for defence costs and regulatory fines

Cyber Insurance What Is Not Covered:

Some of the key exclusions are listed below – for the full list, please refer to the policy wording:

Acts of terrorism, however cyber terrorism would be covered

Loss of money due to fraud or dishonesty of an employee

Failure of the internet, utilities and telecommunications

Errors or omissions in any professional advice or services

Any proceedings or claims brought by a subsidiary, parent or associate company

Misappropriation of trade secrets, licence fee or royalties in respect of intellectual property

Any fine, regulatory or statutory payment or criminal prosecution unless insurable by law

Why cyber insurance should be part of your annual insurance premiums

More than three-quarters (86%) of British small to medium enterprises (SMEs) do not have any cyber insurance in place, according to research by insurer Aviva.

Even though

39% of UK businesses have reported a cyber security breach or attack in the last 12 months

26% of UK charities have reported a cyber security breach or attack in the last 12 months

Among those that have identified breaches or attacks, around a quarter (27% of these businesses and 23% of these charities) experience them at least once a week.

A sizeable number of organisations that identify breaches report a specific negative outcome or impact. On average, for those that do, the costs are substantial.

Among the 39 per cent of businesses and 26 per cent of charities that identify breaches or attacks, one in five (21% and 18% respectively) end up losing money, data or other assets. One-third of businesses (35%) and four in ten charities (40%) report being negatively impacted regardless, for example, because they require new post-breach measures, have staff time diverted or suffer wider business disruption.

The COVID-19 pandemic has led to significant changes in ways of working. This has made cyber security harder for many organisations.

Cybercrime, which includes everything from theft or embezzlement to data hacking and destruction, is up 600% as a result of the COVID-19 pandemic. Nearly every industry has had to embrace new solutions and it forced companies to adapt, quickly.

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