Article written and provided by Sophie Kingwell- Meader, Account Executive at Estate Insurance Group, for Beacon Gainer, private wealth advisory services group.
What is Cyber insurance?
Cyber risk is an exposure that no modern business can escape. As businesses operate online more and more, whether to increase business efficiency or as a reaction to new challenges, such as COVID-19, their cyber risk increases. The financial impact of cybercrime, business interruption, and privacy events are now felt within all industries. With solutions designed for businesses of all sizes, cyber insurance products provide cutting edge, innovative cover to protect against the very real and growing threats of the digital age.
Who could benefit from Cyber Insurance?
Any business that operates wholly or partially online can benefit from cyber insurance. Whether a sole proprietor, private landlords, or professional services firms, a tailored cyber policy can offer peace of mind as you conduct your day to day activities. Businesses that hold client data under GDPR rules may also have a regulatory requirement to have cyber insurance in place as part of their internal data management system.
How does Cybercrime affect businesses?
Cybercrime is what many people would consider the “traditional” cyber risk – a third party attack or breach of data that causes a loss. This can either be an active hack into an internal system or, more commonly for SMEs, a redirection, or interception of data. Cybercrime sections of policies cover any third party cyber-attack on behalf of the insured, including the previously described payment fraud. Payment fraud cover insures the business against the effects of bank detail amendments due to a cyber-attack, either paid to the business itself or from a third party supplier. This cover is particularly important if businesses use online transfers or rely on frequent payments from their clients to stay liquid.
What is covered?
Specialist cyber insurance policies cover incident assistance and management, from the cost of investigating a cybercrime to recovering the loss of income incurred from a business shutdown. The standard covers of cyber incident response costs, system damage, and business interruption can also be tailored to include additional covers such as:
– Media liability
– Court attendance costs
– Network security and privacy liability
What can businesses do to assess their cyber risk?
Businesses should review their online operations, internal systems, and current insurances to identify their exposures and talk to their brokers about their policies. Cyber can either be offered as an extension to existing policies as part of a renewal or placed on a specialist standalone basis – for specialist cyber policies, the level of cover and inclusions can be tailored to meet your needs.