Cyber Liability

If your computer suffers a malicious attack, or your defences are breached, do you know how and when you can get your business back to normal?

Most businesses are becoming dependent on digital technology and a majority hold sensitive data. Don’t assume that your traditional insurance policies will automatically extend to cover these risks, as they probably won’t.

Whether you suffer an online hack, have your laptops stolen containing personal data or inadvertently accept a virus, which you could even pass on to other parties causing losses or damage, you are vulnerable and without a specific cyber policy unlikely to be covered. 

First or third party cover?

If your traditional insurances do offer an element of cyber coverage it’s important to check what your policy actually covers you for. Some are limited to third party liability only and your own costs will not be covered should your systems be attacked.

Typical cover can include:

  • First-party insurance covers your business’s own assets.
  • Loss or damage to digital assets such as data or software programmes.
  • Loss of income arising form network downtime.
  • Cyber extortion where third parties threaten to damage your system, corrupt files or release data if money is not paid to them.
  • Customer notification expenses when there is a legal or regulatory requirement to notify them of a security or privacy breach.
  • Reputational damage arising from a breach of data that results in loss of intellectual property or customers.
  • Theft of money or digital assets through theft or loss of equipment or data stored therein.

Third-party insurance covers the assets of others, typically your customers. 

  • Security and privacy breaches, and the investigation, defence costs and civil damages associated with them.
  • Multi-media liability, to cover investigation, defence costs and civil damages for defamation, breach of privacy or negligence in publication in electronic or print media arising from the content of your email.
  • Loss of third party data, including payment of compensation to customers for denial of access, and failure of software or system.

The main types of cyber claims are:

Hacking  A business is targeted and hacked by an individual who steals customer bank account details and personal data. This is then shared on the Internet to create false identities. Talk Talk suffered this kind of breach twice in 2 years.

Phishing or Social Engineering is becoming a more popular tactic.  A business receives an email form a well-known organisation or even from someone in the office. It appears legitimate and asks for credit card information or transfer of funds.

Denial of service attacks. This form of cyber attack is when the attacker floods a business’s network and computer systems preventing legitimate users from using the service. MumsNet and Carphone Warehouse both suffered these attacks in 2015.

Make sure you are aware of the new EU data rules

Having cover in place is a must but that is only half the job. You’ll need a cyber attack plan too. New European Data Protection Regulation was recently passed and comes into effect on 25th May 2018. There are tough new rules around storing data and reporting attacks with the threat of stiff fines if companies aren’t compliant.

There is plenty of online support and the government has a cyber essentials scheme available to businesses. Brexit will not affect this new regulation.

Why use a broker?

At J Bennett & Son we tailor the policy to suit you and your needs because every business is different.  Cover levels are a factor in the premium and to ensure you get the best value we will always try to arrange a policy on a “costs exclusive” basis, which means that insurers costs in defending a claim will not be taken out the indemnity limit.

You will have your own dedicated account manager, who will make it easy for you to switch from your existing insurer. We offer you flexible payment options, bespoke insurance solutions, specialist knowledge and impartial advice.

If a claim has to be made, we work with you, the insurer and the loss adjusters to get it settled as quickly and as satisfactorily as possible, removing the hassle and worry you may have. It’s why so many of our existing customers have been with us for over a decade.

We’ve been providing insurance that is built around you. For a personal approach to insurance and a chat about your needs, call us on 01494 450 450 email us at today.

You might also be interested in:

Download our helpful fact sheet on Cyber and Data Insurance simply explained.

Speak to a specialist
Ben McCafferty Cert CII

Account Director
Tel: 01494 450806

Useful Documents

We provide a selection of useful documents including claims forms, facts and policy information available to download.

"J Bennett & Son allowed us to focus on our day-to-day business by taking all the heat out of an incredibly stressful situation. This has taught me a lasting lesson about the value of having a professional insurance broker."

Cormac Murphy - Intuitiv - Aylesbury