Cyber Insurance FAQs
24th July 2019 4 min read
What is a cyber risk?
“Cyber risk means any risk of disruption or damage to the reputation or financial loss, of any organisation from some sort of failure of its information technology systems” Institute of Risk Management, 2019
What does cyber insurance cover?
Cyber insurance provides businesses with protection against financial loss resulting from the loss of personal and/or corporate data.
Cyber cover addresses the first and third-party risks ranging from the loss of a single laptop or file to the hacking of a company’s website or network.
This includes the theft or corruption of valuable data, interruption to key systems and your customers, suppliers or any third party suing you for destruction, misuse or misappropriation of their data.
Main triggers of the policy include:
For more information on cyber insurance, please see here.
Why does my business need cyber insurance cover?
One of the most popular causes of a cyber-attack is human error, such as one of your employees leaving their laptop on the train and someone accessing your data, or an employee clicking on a fraudulent link in an email, which shuts down your company systems. Having a comprehensive insurance policy in place will help you deal with these types of incidents and get your business back up and running quickly.
How much does cyber insurance cost?
We cannot predict the exact cost of a business’s premium for a cyber policy without more information on the company. However, a cyber claim may cost you thousands, and maybe even hundreds of thousands of pounds, and therefore cyber insurance is an investment you don’t want to miss out on.
Doesn’t my business insurance policy cover me for a cyber-breach or attack?
There are significant gaps in business insurance policies, including:
Costs associated with dealing with the cyber event
Legal advice, forensics and IT
Public relations to manage the reputational impact of the cyber event
Cyber extortion assistance to deal with ransomware
Reinstatement of data that has been corrupted
Property damage as a result of a cyber event
What is the claims process?
When you purchase a cyber insurance policy, you are not just buying an open cheque book, you are buying a product to compliment your disaster recovery plan. Cyber insurance will give you access to a 24/7 helpline to call in the event a cyber-attack that will instigate a response plan to identify and mitigate an attack.
What is the difference between cyber and crime?
Cyber is the theft or corruption of valuable data, interruption to key systems and your customers, suppliers, or any third party suing for misappropriation of their data. Whereas crime includes the direct financial loss suffered as a result of employee dishonesty, theft and collusion or external crime including theft of funds and fraud.
For more information on the difference between cyber and crime, please see here.
How can Miles Smith Insurance Solutions help me with cyber and/or crime insurance?
Miles Smith Insurance Solutions can recommend the most appropriate insurance covers for your business, which is especially useful if you are new to cyber / crime insurance or unfamiliar with the importance of cybersecurity.
Get in touch with us
We have a team of experts at Miles Smith who can arrange a cyber insurance programme for your business.For more information, or to book an appointment, give us a call on 020 7977 4800 or email us at firstname.lastname@example.org
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