Cyber Liability & Cyber Crime Insurance protects businesses against financial losses arising from cyber risks including malware viruses, hackers, and other malicious cyber-attacks. It can also provide coverage for cyber crime such as fraudulent transfers, social engineering, and identity theft.
What Does Cyber Liability & Cyber Crime Insurance Cover?
- Cyber Incident Response – 24/7 support and event management from a panel of specialist firms following a cyber event
- Cyber Liability – Protection against claims and third-party financial loss arising from a cyber event occurring in your network which impacts others.
- Privacy Liability – Coverage for breaches of privacy rights, disclosure of personal data, and confidentiality breaches.
- IT Security & Forensics – External IT consultant costs for forensic investigation and malware removal.
- Own System Damage – Costs to retrieve, restore, or replace data and programs after a cyber incident.
- Business Interruption – Compensation for lost profits due to system outages.
- Extortion – Response and payment for ransomware or malware threats.
- Cyber Crime – Funds Transfer Fraud, Social Engineering Fraud, Phishing & Identity Theft.
- Regulatory fines and penalties – including investigation and defence costs arising from GDPR breaches and actions by the UK Information Commissioner’s Office (ICO).
Cyber liability insurance policy features*
Cyber liability insurance usually covers:
- Claims-made basis of cover.
- Flexible limits of indemnity to suit your business needs with some Insurers offering low or no excess.
- Worldwide cover options (including USA/Canada subject to insurer acceptance).
- Access to proactive Insurer risk management services and expert incident response provision.
Typical exclusions:
- Breach of Professional Duty (usually Insured under a Professional Indemnity policy)
- Known claims or circumstances prior to policy inception or policy renewal
- War, terrorism, and nuclear risks
- Insolvency
- Reckless Acts
- Failure to maintain minimum technology security standards required by Insurers
FAQs
Does my business need cyber and privacy insurance?
Virtually every business faces cyber threats of one type or another, not just larger high-profile businesses. Cyber risks is a complex and business specific subject. Each firm, sector and industry present different risks depending on the nature of business activities and the extent of reliance on technology.
Cyber Insurance is important to any firm that uses technology in their day-to-day trading, whether that be a technology business, such as online retailers, but also other sectors such as manufacturing businesses who use production machines which have electronic controls and software. Additionally, at a very basic level, any firm who uses technology for day to day activities such as sending emails and storage of personal data.
How common are cyber attacks?
According to UK Government statistics, just over four in ten businesses (43%) and three in ten charities (30%) reported having experienced any kind of cyber security breach or attack in the last 12 months.
It’s important to note that these figures are also based on those who reported such incidents.
How much does cyber and privacy liability insurance cost?
Cost depends on a number of factors including, business type and industry, size, turnover, coverage levels and claims history. Premiums can start from as little as a few hundred pounds for a low limit of indemnity increasing depending on the exposure, risk profile and the limit being purchased.
Can cover be tailored?
Yes, policies can be customised to your specific needs and risks.
Why arrange your cyber insurance with us?
- Expert advice from specialist brokers.
- Tailored cover to meet your needs.
- Competitive premiums.
- Access to market-leading insurers.
- Incident response support and risk management guidance.
This information is a general guide only. Adler Fairways will assess your requirements and recommend a bespoke range of insurance solutions to meet your needs. As part of the quotation process, we will provide full details of the specific coverage, benefits, limits, premiums, exclusions, excesses payable, and any other policy conditions that would apply to the insurance we recommend for you. We currently only offer cover to businesses registered in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.
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