Should Your Business Consider Cyber Insurance?
Updated: May 6
Cybercrime is one of the fastest-growing crimes globally, and almost all businesses are at risk of being a victim.
Data breaches, ransomware, phishing, social engineering, funds transfer fraud, the list is endless where many businesses remain unprotected against these ever-present threats.
A competent IT team, robust infrastructure, technology outsourcing, cloud storage, and even the latest anti-virus software cannot always secure businesses from the sophisticated and constantly evolving technology used by criminal hackers.
Cybercrime – The Key Facts
According to a 2020 Government survey:
• Almost half of the businesses surveyed (46%) and a quarter of charities (26%) reported having cybersecurity breaches or attacks in the last 12 months.
• Among the 46 per cent of businesses that identify breaches or attacks, one in five (19%) have experienced a material outcome, losing money or data.
• There has been a significant rise in businesses experiencing phishing attacks (up from 72% to 86% in 2020)
Why should my business consider cyber insurance?
According to leading Cyber insurance provider CFC Underwriting, findings suggest that 60% of all cyber-attack targets are SMEs. Which is in keeping with the data shown in a recent Verizon Data Breach Investigations report which suggests 58% of victims were categorised as small to medium-sized businesses.
According to the Verizon Data Breach Investigations Report, it will come as no surprise that 86% of breaches were financially motivated. But why SMEs?
• SMEs can be the ‘gateway’ to larger organisations and are often connected electronically to a larger end client or partner organisations.
• SMEs are more vulnerable to social engineering, meaning that it is easier to manipulate people into doing things like sharing confidential information or transferring money
• SMEs believe they MUST pay ransom demands because they feel that they have no experience in negotiating with an attacker
• An SME may not be the target at all, but simply collateral damage!
Often businesses believe they are safe because they outsource their IT and/or their data is stored in the cloud, but if a cyber-attack is launched against one of their technology providers, their information is also at risk.
What does Cyber Insurance cover?
As with all insurance, policies can vary, and cover can be tailored to the individual business' needs. The list below gives an idea about the types of Cyber insurance Simcox Brokers can arrange on behalf of companies.
• Cyber incident response – covering the costs of IT forensics, legal & regulatory, breach management & remediation and crisis communications
• Cybercrime Cover - covering funds transfer fraud including funds held in escrow, social engineering, theft of personal funds, corporate identity theft, telephone hacking, cyber extortion, and ransomware attacks
• System damage and business interruption – covering system damage and rectification costs, direct loss of profits and increased cost of working, business interruption, consequential reputational harm, claim preparation costs and hardware replacement costs
• Network security and privacy liability – covering network security & privacy liability, management liability, regulatory fines, PCI fines, penalties and assessments
• Media Liability covering defamation and intellectual property rights infringement
• Technology Errors and Omissions
• Court attendance costs
In the event of a cyber breach, how can insurance help?
Access to Cyber incident response experts
A good cyber policy provides access to a wide range of emergency incident response services where experienced individuals will navigate and help you contain the cyber incident. These individuals could prove invaluable if called upon and can even negotiate or arrange payment on your behalf should your business be held to ransom.
Restoration of business data
Data is one of your most important assets! A cyber insurance policy can provide comprehensive cover for data restoration and even re-creation in the event of a loss.
Getting your business operations back up and running
Technology systems are critical to operating your day-to-day business, and their downtime can prove very costly. Did you know that your tech systems are not covered by many standard business interruption insurance clauses?
How can Simcox Brokers help?
As an insurance broker, we offer a service, not just an insurance policy! We will help you understand the key cyber risks within your business, the covers available and arrange a policy tailored to your individual needs and budget.
Alongside this, we can offer access to a range of tools so you can protect your business and mitigate your risks. This is done through the likes of the services provided by our partner Bewica who offer industry-leading tools and training, making cybersecurity straight forward for small to medium-sized businesses.
If you would like to find out more about Cyber Insurance or would like a quotation, please get in touch with our experienced team at email@example.com or give us a call on
0117 325 0560.
You can also contact us through our website at Simcox Brokers Ltd.