Does Your Business Need Cyber Liability Insurance?

Cyber liability insurance can be a lifesaver as much of our day-to-day business operations moves online and becomes more reliant on digital transactions. Improvements in digital technologies and the increased uptake have provided a wealth of benefits for businesses and customers alike, offering convenient, quick online transactions and allowing companies to expand their reach to customer bases outside the local area.

But, along with these benefits, there is a darker side to the digital world in the form of security breaches and data loss. Data breaches have become increasingly common in today’s world, with up to 88% of UK companies suffering data breaches in 2020 and the likelihood of a cyber-attack on a business being nine times higher than a burglary.

This is why cyber liability insurance is an excellent choice for businesses, allowing them to stay operational after an attack. Here’s what you need to know.

What is a Cybersecurity Breach?

Businesses hold sensitive information about their customers, like their names, card details, phone numbers and addresses. A cybersecurity breach can see these details end up in the wrong hands, with attacks varying from phishing scams that solicit this sensitive data or ransomware that blocks access to software until a sum of money is paid to the hacker.

Cyber attacks can drastically impact small businesses. Their reputation with customers can be severely damaged, making it difficult to win back that trust, and productivity will be affected as a business spends time responding to the attack, leading to the company suffering overall. Perhaps worst of all, companies can lose money either by cybercriminals stealing their bank details or by ransoming monetary amounts to relinquish control of a business’ computer software.

What is Cyber Liability Insurance?

Cyber liability insurance is designed to protect your business if it suffers a data breach or is targeted by hackers. While companies are responsible for their own cybersecurity, the right kind of insurance will provide additional support like financial and reputational costs, investigation, data recovery, computer system restoration costs, and financial aid when legal claims are made against the business.

Cyber liability insurance helps protect your business against cyber threats, helping them to recover losses suffered.

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Why Do You Need Cyber Liability Insurance?

When GDPR came into force in May 2018, it became a legal requirement in the UK to report certain data breaches to the Information Commissioner’s Office within 72 hours of becoming aware of the breach. As a result, the number of violations has only grown over the last few years, especially in 2020, due to the increase of people working from home.

The law clearly outlines that businesses must protect personal data when entrusted with it or potentially face significant fines. So any company that holds personal information, such as customer or employee names, addresses, bank details and payment details, should be protecting itself with cyber liability insurance.

Cyber attacks are prevalent, and cost SMEs in the UK an average of £16.1k. It has been reported that one small business is hacked in the UK every 19 seconds and that 32% of UK companies do not have cybersecurity insurance to cover ransomware – of which 13% of UK companies reportedly paid the ransom. Aside from investing in cybersecurity to prevent attacks, cyber liability insurance can shield businesses against costly losses.

Cyber Liability Insurance Options

Like all kinds of insurance, there are various options to choose from depending on what you want to cover. At IC Insurance Solutions, our bespoke liability insurance packages include:

  • Financial and reputational costs.
  • Costs of investigation, data recovery and computer system restoration.
  • Costs of legal claims made against a business.
  • Fraud and theft cover.
  • Property damage cover, i.e., malfunctioning servers.
  • Dependent business interruption.

When looking for cyber liability insurance, make sure you choose a package that covers the needs of your business, ensuring complete coverage for your entire company’s network, not just individual machines or devices.

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How IC Insurance Solutions Can Help

We offer a personalised service that takes every single one of your business needs into consideration. We will advise you on the best options for policies to cover your needs. Our expert team knows the market inside and out, and our strong partnerships with insurance providers ensure we can find you the very best, competitive prices.

Contact us today to request your free quote; we will discuss your cyber liability insurance needs with you and then endeavour to find you the right policy as quickly as possible. We will present all the information you need to know in an impartial, easy-to-understand way so you can make an informed decision without getting bogged down with confusing jargon.

If you’re looking for insurance brokers in Bolton, we can help. Our team would be more than happy to hear from you and work with you to help protect your business from the consequences of cyber-attacks.

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