Why Businesses Need Cyber Insurance
What is Cyber Insurance
Cyber Insurance is used to protect businesses from risks associated with the internet and information technology activities and infrastructure.
A separate policy is required because traditional general liability insurances tend to exclude the cover required or may be vague about the applicability to the policy.
Why do businesses need Cyber cover?
The stories that reach the news are of big companies suffering cyber related incidents. However as the numbers below show and business can be subjected to a form of cyber risk.
In the last year, over 875,000 SMEs declared that they were affected by a cyber-attack. A cyber attack can cost anything from £10,000 to over £2.5m, which could be enough to put a business in financial problems. These costs can include legal fees, business interruption, and more!
Why do you need Cyber cover?
The issues to consider are how will you:
- Respond to a disruption to your system? Will you be able to trade?
- Manage your interaction with regulators? Information commissioners office, Financial conduct authority etc
- Manage any reputational issues or suits from customers?
- Manage regulatory actions including penalties or fines?
- Resolve and breaches of security or privacy?
- Ensure corrupted or encrypted data is restored?
Why choose our Cyber cover?
- Integrated Breach Management
An integrated service created to provide a “one stop shop” for the full range of services required to manage, investigate, resolve and recover from a data security breach. MUM provides access to a 24/7/365 emergency response team who are ready to help when bad situations arise. More details are available.
- What do we cover?
- First Party Coverage
• Data Recovery Costs.
• Business Interruption Loss.
• Reputational Harm.
• Extortion Expenses.
• Cyber Theft Loss.
• Telephone Hacking Loss.
- Third Party Coverage
• Cyber Liability.
• Payment Card Industry Liability.
• Regulatory Proceedings, including fines and penalties where insurable.
• Multimedia Liability.
- Additional Standard Coverages
• Attendance Expenses.
• Loss Mitigation Expenses.
• Social Engineering Fraud – Indemnity for the insured’s own losses arising directly from a fraudulent instruction.
- First Party Coverage
OUR CYBER PRODUCT IN A NUTSHELL
- An integrated breach management solution
- Coverage triggers when an Executive Officer discovers or reasonably suspects a cyber-incident
- No retroactive limitation
- No sub-limits for core cyber coverages
- Business Interruption coverage
- Extended Indemnity period for Business Interruption losses
- Underwritten specifically as primary to any other applicable insurance, so as to avoid conflicts
- Worldwide territorial and jurisdictional limits
- Cover for computer system ‘betterment’ where the loss doesn’t exceed that which would have been incurred
- Loss mitigation expenses cover includes reimbursement of employee overheads or customer goodwill incentives that serve to reduce the overall loss
For more details click here