In today’s digital, globalised society, cyber risk is well regarded as one of the most significant threats to individuals, businesses and governments.
As we continue to utilise technology to make every day processes more efficient and effective, the amount of data and records we create are growing at an unprecedented, exponential rate. According to some industry sources, the amount of data we have created since the beginning of time will increase by 50 times by 2020. As the digital world touches on more and more areas of our lives, we pay the price by being exposed to a greater variety and frequency of cyber risks and incidents. Cyber risks continue to evolve at a pace that far exceeds international cyber risk prevention strategies and legislation.
Despite the common misconception, cyber insurance is not solely for ‘tech’ or ‘internet’ intensive companies. In fact, most companies would benefit from a cyber insurance policy, including any that: rely on a system or network for their business to operate or to derive income; who have a presence online; who deals with highly confidential intellectual property; or stores, transfers or processes sensitive data. Safeonline’s clients range from retailers, financial institutions and education entities, to not-for-profits, manufacturers and lawyers.
So What Exactly Does Cyber Insurance Cover?
First Party Losses/Costs
- Business interruption – Indemnification for the loss of profits due to a security or system failure, including any ‘work around costs.’ Cover can also include ‘contingent business interruption’ providing you with the same indemnification but as a result of a supplier or service provider’s failure.
- Network and data restoration – Cover for all the costs associated with the restoration of your system, network and data.
- Crisis and breach management.
- Notification costs. Cover for all the costs associated with notifying individuals about a data breach, regardless of whether this is voluntary or required by law.
- IT forensics. Immediate access to leading IT forensic professionals to establish the source of a breach, and to manage and mitigate any further damage or issues.
- Credit monitoring. If financial details have been lost or stolen, then the provision of credit monitoring for the affected customers can be provided.
- PR and reputational harm expenses. Access to specialist PR consultants to mitigate the potential reputational harm impacts of a cyber event
- Fraud consultation. The provision of expert legal and forensic professionals to establish the extent of any potential fraud
- Legal representation. Legal costs in defending you in any legal action as a result of a cyber event
- Extortion and ransomware. Coverage for any extortion or ransomware demands and amounts, as well as access to the consultancy firms to assist in managing the situation.
- Social engineering & theft of funds. Cover for your theft of funds as a result of a targeted social engineering or phishing attack.
- Reputational damage. Cover for loss of income related to the reputational damage suffered after a media publication regarding the data breach
Third Party Liabilities
- Privacy & security liability. Cover for legal defence and the settlement of claims arising out of the failure to keep customers’ personal data secure. Costs for regulatory investigations and civil penalties also covered where insurable by law
- Multimedia & online content liability. Coverage provided for the infringement of a third party’s copyright and libel, etc.
Fines and Penalties
- Fines and penalties where insurable by law. Including PCI-DSS fines and assessments, for breaches involving payment card data (PCI), and fines and penalties for HIPAA non-compliance.
Please note it is important to refer to your policy wording for full coverage T&Cs.
Safeonline are one of Lloyd’s largest cyber insurance brokers, and we have relationships with over 70 capacity providers in the space. As well as having a portfolio of our own products and wordings, we work closely with lawyers and leading breach response experts to ensure that our clients have access to the leading coverage. As a result, Safeonline have been shortlisted for ‘Broker of the Year’ at this year’s Insurance Insider Awards.
Also, be sure to have a look at our Media section of the website, where you will find: an Insurance Glossary, helping to decipher some of the more complicated cyber-jargon; a GDPR blog, providing you with some insight into the new wave of data regulation that is soon to become effective; and our new ‘Emerging Technology Risks’ blog.
To get in touch with the team, please use the contact details on the right, or email firstname.lastname@example.org