Cyber insurance covers the losses relating to or from IT systems and networks. It is likely you will rely on an information technology (IT) infrastructure to some degree in your business. If so, you will be exposed to the risks of business interruption, income loss, damage management and repair, and possibly reputational damage if IT equipment or systems fail or are interrupted.
Imagine you lost a lap top on a train or if it was stolen from a vehicle. Perhaps an employee opens the wrong attachment in a spam email, or a disgruntled employee maliciously enters a virus on to your systems. You could be left facing fines, penalties and the costs associated with notifying affected individuals or restoring lost data.
It is estimated that one third of small businesses may suffer a cyber attack from someone outside their business in just a a 12 month period. Furthermore, the average cost of a major security breach is understood to be between £65,000 and £115,000 and can result in a business being put out of action for up to 10 days, according to government estimates.
There is an increasing range of insurance solutions available to help protect you if the worst should happen. Cyber insurance can cover loss or damage to digital assets or software programmes as the result of a cyber crime. It can also protect your business against electronic theft, costs associated with security or privacy breaches or loss of third party data that your business may hold.
Cover is available subject to underwriters’ acceptance of risk. Premiums and terms are dependent on your circumstances.