Cyber Insurance Cover

Cyber Insurance: Why no business is immune to cyber threat

Evidence has increasingly shown that businesses, including charities of all sizes and trading in all sectors, can experience a cyber attack. Technology has fundamentally changed the way business work. Setting the foundation for companies to become digitalised and interact with customers over the internet, which is attractive for cybercriminals. A Survey published in 2019 revealed that almost a third (32%) of businesses had experienced a cyber attack or breach over a 12 month period.

Types of Cyber Claims:

Theft of data:

Data theft is ever increasing and with business holding vast amounts either within their own systems or in the cloud, criminals can find ways of monetising this. Seemingly innocuous information, such as names and addresses stored on a computer network, can be worth more money than you think.

 Denial of Access:

Criminals are aware of business’ reliance on their systems for day to day interaction with customers, whether that be to distribute information, provide a  trading portal or to transact a sale. Not too uncommon, criminals can demand a ransom to relinquish control of the system, which often leaves the paying company left with further damage that is costly to fix.

Theft of funds:

To some degree, nearly every business uses internet banking, therefore, is vulnerable to cybercrime. Criminals no longer need to physically break into the premises to steal company funds. The concerning thing is that if the company has been negligent the banks may not refund them.

How does Cyber Insurance work?

A Cyber Insurance policy typically has various elements and these go beyond the financial compensation following an incident covered under the policy:

First Party:

This covers events relating to actual or suspected unauthorised system access, electronic attack or privacy breach.

Third Party:

This covers the insured for liability alleged against them arising out of a cyber event.

 Cyber Crime:

Indemnifies the insured against the fraudulent transfer of funds electronically.

Cyber Response:

Appointment of Data Protection Specialists, Cyber Incident Consultants,  Digital Investigation Teams, Credit Monitoring Services & Public Relations to Crisis Management services.

If you would like to know more about Cyber Insurance, please contact JPM Insurance Advisers Ltd on 0121 270 4800.

Written by Jonathan Till

jmtill@jpm-group.co.uk