News

Thursday 15 October 2015
Cyber Liability Insurance

In a rapidly changing technological landscape as businesses evolve and become ever more reliant on technology, the risks from suffering a loss related to problems with computer systems or from holding sensitive customer data continue to grow. This can lead to lost revenue, a damaged reputation, legal and regulatory costs and the associated costs of business disruption.

Businesses face risks through their use of online networks and system from hackers, hactivists, malware, negligent and rogue employees and poor IT controls.

All businesses from larger organisations to sole proprietors need to be concerned about their cyber exposure. Even the smallest business is likely to make use of technology, for monitoring stock, keeping track of finances or just a simple website.

It is a fact that cyber-attacks are on the rise, as evidenced by the following figures -

  • UK Cyber Crime costs £27bn a year
  • Average cost of a data breach to Small Business £35,000-£65,000
  • 60% of Small Business experienced a data breach in 2014
  • Average cost of a data breach to a large organisation £450,000-£850,000
  • 93% of large organisations are targeted for cyber attacks
  • 78% of large organisations are attacked by unauthorised outsiders
  • 84% of businesses report staff related cyber breaches

Not knowing how to manage a data breach and how to respond when such an event occurs can make remedial costs much higher. Absorbing such financial costs can be difficult and it is important to have plans in place beforehand.

Cyber Liability Insurance provides businesses with protection against financial loss resulting from the loss of personal and/or corporate data. Cover addresses the first and third-party risks ranging from the loss of a single laptop or file to the hacking of a company website or network.

In a world that relies on technology and digital innovation, it is reassuring to know that you can rely on us to design a Cyber insurance programme that will manage the complex risks you face and deliver an immediate range of responses to a data breach or an extortion attempt.

If you are uncertain about your own business’s actual exposures, we can provide a range of scenarios based on actual events and many other examples of cyber claims if you need more information.