What is Cyber Insurance?
Cyber Insurance is designed to mitigate loss from a variety of cyber incidents, such as:
- Malicious destruction of data
- Denial of service attack
- Virus, malware, spyware, etc.
- Accidental damage of data
- Human error
- IT system failure
- Cyber extortion threats
- Breach of privacy
- Misuse of personal data
- Defamation or slander
- Transmission of malicious content
- Cyber Theft
For a complete list of coverage, please contact us.
How much does it cost?
Why is it so important for smaller businesses to ensure that they are covered?
42% of small and micro-sized UK businesses identified at least one data breach or cyber attack in the last 12 months (Gov.uk).
Smaller businesses are often seen to be easier targets than large businesses, as they tend not to make the same investment in cybersecurity systems. In fact, the same Gov.uk report also shows that small and micro-sized businesses are less likely than medium and large businesses to:
- Have sought information, advice or guidance about cyber security (58% vs 79%)
- Have formal cyber security policies in place (26% vs 62%)
- Have undertaken any cyber security training (19% vs 47%)
How do data breaches happen?
Data security breaches can occur in many ways, including:
- Employee theft
- Theft or loss of equipment (such as laptops and hard drives)
- Unintentional exposure of data on the internet
- Improper disposal of data and more
Can I protect my business without purchasing Cyber Insurance?
Doesn’t my Professional Liability policy include cyber coverage?
Many companies believe that cyber liability risks are already covered by Professional Liability Insurance. While your policy may provide some coverage for cyber liability risks, there are often huge gaps or grey areas. For example, most Professional Liability policies will cover the computers themselves, but not any data stored within them. If your business does fall victim to a cyber-attack, your Professional Liability policy will not cover the legal costs and interruption of business expenses.
Why do we need Cyber Insurance?
Having the latest technology, firewalls and encryption will reduce the risks of a breach occurring from the outside, if a hacker wants to gain access, they will invariably find a way.
However, a large number of cyber threats come from human error or insider attack. Whether a laptop is lost or a client file is thrown away without going through the shredder, employees can contribute to cyber-attacks unknowingly. Having proper cyber insurance coverage in place is just one more check mark on your list to give peace of mind.
What if we store client data in the cloud?
When client information is stored in the cloud, it is technically stored off site. The information can even be stored in another country, where it may be subject to international search and seizure laws. When storing client information in the cloud you are responsible and should always ask the following questions:
- Will the information in the cloud be encrypted?
- Have the clients provided their written consent to place information in the cloud?
- Does the cloud provider employ adequate security to protect the data?
- Will data be stored internationally? If so, will it be subject to search and seizure?