Cyber Insurance – Overview

Types of business data risks

Data Breach

  • Inadvertently sending out extra information in letter
  • Leaving papers on a train
  • Dumping papers in a skip
  • Disposal of data/shredding
  • Faxing to wrong people
  • Theft of laptop from car

Cyber Attack

  • Hacking to extort
  • Hacking to cause interruption
  • Hacking to steal data or capital

How much does Cyber Insurance cost?

A business with a turnover up to £10,000,000

Limit of Indemnity £100,000 £250,000 £500,000 £1,000,000
Annual Premium (Inc IPT @ 9.5%) £191 £318 £477 £635

What to look for in a Cyber Insurance Policy

  • An insurer that brings in the experts immediately
  • Compensates you for any financial loss as a result of a cyber attack

Cyber and data insurance standard policy covers

First Party
Cover Overview Main Areas
Breach Costs Costs incurred in responding to an actual or suspected data breach
  • Legal fees
  • IT forensics
  • Notification costs
  • Credit monitoring services
  • Call centre setup
Cyber business interruption Business interruption following cyber incident, including as a result of reputational damage
  • Loss of income
  • Increased costs of working
Hacker damage Costs incurred in replacing/repairing damage caused by hacker
  • Computer systems
  • Computer programmes
  • Data held electronically
Cyber extortion Cost incurred in the event of a threat to damage or disrupt computer systems, or publish information
  • Ransom payment
  • Consultant to handle negotiation
Crisis containment Public relations response – prompt, confident communication
  • Expert advice to assist with developing communication strategies to running a 24/7 crisis press office
Third Party
Cover Overview Main Areas
Privacy protection Defence costs and awards/settlements made following legal action or investigation as a result of a data breach, invasion of privacy, or breach of confidentiality
  • Any breach of Data Protection Act
  • Breach of confi dence
  • Regulatory fines/awards
  • Payment Card Industry charges
  • Claims by employees
Media liability Defence costs and awards/settements made following legal action as a result of company’s online presence
  • Breach of intellectual property
  • Defamation
  • Transmission of a virus
Optional
Cover Overview Main Areas
Cyber crime Direct financial loss arising from an external hack into a company’s computer network
  • Money
  • Securities
  • Tangible property
  • Digital assets
Telephone hacking Costs of unauthorised telephone calls made by an external hacker following a breach of a company’s computer network
  • Landline
  • Mobile
  • VoIP