Just a few years ago, cyber liability insurance was still somewhat of a niche product, only offered by specialist insurance companies. Nowadays, many of the big insurance providers have a cyber insurance product available, either as a standalone policy or as an add-on to an existing plan.
As cyber insurance is still a relatively young phenomenon, policies still tend to vary more than they do for other types of insurance product. Before you choose a policy, it’s essential to identify the kinds of risks to which your company is most vulnerable. For instance, some policies do not provide cover for unintentional security breaches or non-malicious attacks, which could leave your company liable to cover all the costs for a lapse in security caused by oversight from one of your staff members.
The cyber security sector is continuously evolving. New threats appear every day, which require new technology to combat. It’s a good idea to check how your provider intends to handle new developing threats and how they can help you in the event of a claim. A final point to consider is the geographical limitations of a policy. Does the policy cover you internationally? Some providers exclude data theft of cybercrime that occurs outside the UK, which could be a problem if your website is available all over the world.
Finding a Provider
Finding a cyber insurance policy can seem like a daunting task, particularly if you have no dealings with the cyber side of your business. Fortunately, whichever route you take to finding a policy, you can seek advice along the way. You can either buy a standalone policy directly from an insurance provider through one of their sales advisers or choose to go through a broker.
- Going direct – More and more insurance providers are offering a cyber insurance policy. Usually, you can purchase a standalone cover to secure your business against all manner of cyber-related risks. However, it may be cheaper and more convenient, particularly for smaller companies, to add this cover onto an existing policy or include it in part of a package insurance deal.
- Comparison websites – Approaching multiple insurance providers can be time-consuming. It’s hard to know where to start, and while one company may appear cheaper, you may find they lack certain features offered by other providers.
- Going through a broker – Alternatively, you can buy a cyber insurance policy through a broker. Brokers often have access to better deals than customers who approach insurers directly, both in terms of price and coverage. You can also find many brokers who specialise in cyber risk insurance through the British Insurance Brokers’ Association (BIBA). Opting for brokers listed here ensures their credibility in the field, demonstrating that they uphold exacting industry standards.
Cyber Insurance Providers
This handy list compiles some of the cyber insurance products available on the market today, to help you kickstart your search.
CoverWallet
The cyber liability insurance offered by CoverWallet is especially suitable for smaller businesses. Their cover can include loss of digital assets, business interruption, cyber extortion costs as well as both employee and non-employee privacy liability.
Aon (Broker)
Ranked the 2nd brokerage by the Insurance Times in 2019, Aon is one of the UK’s largest insurance brokers. They offer dedicated client managers to help you find a policy that works for you and your business. Aon has links with a variety of reputable insurance providers who can offer specialist cyber insurance packages tailored to specific professions, industries and organisations, including cyber insurance for solicitors and other professionals as well as policies for schools and care homes.
Their insurance packages include an emergency breach response feature, which can help reduce any fines you may incur if you breach GDPR, by helping you deal with the incident smoothly and effectively. Their cover is not limited to malicious attacks – they can also cover loss of client folders or emailing the wrong documents to the wrong people.
Towergate
Rated 4.6 out of 5 stars on Feefo, based on over 8,400 reviews, Towergate’s cyber liability insurance can cover a range of cyber-related risks. From cyber extortion and data recovery to business interruption and hacker damage reimbursement, Towergate’s policies offer comprehensive cover for small and large businesses alike. Through their policy, you have access to the services of a leading risk consultancy firm to guide you through a hacking incident and help you manage the aftermath. You can generate an online quote through their website and purchase your cover online, or call their specialist team with any queries.
Digital Risks
A policy with Digital Risks can cover an extensive range of circumstances. Their cyber and privacy liability covers you should you fail to disclose a breach within the GDPR time limits or fail to comply with elements of your privacy policy. Their extensive media content liability can provide cover for any compensation you may have to pay due to intellectual property infringement on your website, social media or in your advertising, such as using an image without the proper permissions.
Other features of their cover include GDPR defence costs and penalties in the event that you breach GDPR regulations, and can cover fines relating to a security breach of customer credit or debit card information. Finally, their policies can include legal costs involved with investigating cybercrime as well as loss of income protection due to business interruption following a breach. Digital Risks also offer an around-the-clock helpline providing access to computer security and legal experts who can help you mitigate your firm’s reputational damage.
Hiscox
The CyberClear policy by Hiscox offers protection for GDPR non-compliance claims, loss of income as a result of a data breach and cover for the cost of repairing or replacing equipment damaged by a cyber attack. If your company is the victim of cybercrime, Hiscox are on hand to manage a data breach with forensic investigations, legal advice and support notifying customers or regulators. Their helpline can get your business back on its feet as quickly as possible, minimising any reputational damage caused. Hiscox are a particularly helpful provider for small businesses, with multiple locations across the UK and the US.
AIG
AIG’s CyberEdge Cyber Liability insurance is a comprehensive package designed to protect businesses from the risks associated with a cyber breach or attack. Whether you’re a small business or a multinational enterprise, AIG can offer protection across all industry sectors in 60 countries worldwide. Before you begin, you can generate a report of your firm’s cyber posture, which comes with a more detailed analysis of your situation and risk if you purchase a policy. This allows businesses to identify their level of risk and implement strategies to reduce their
Their recently updated and improved network interruption feature kicks in as soon as an incident occurs, meaning you can get complete financial cover. Clients also receive up to £10,000 worth of complementary services to strengthen their firm’s defence lines, through cyber security education for employees and one-on-one sessions with consultants to discuss your company’s cyber posture and expose any vulnerabilities.
Aviva
Aviva offers a competitively priced, comprehensive standalone cyber insurance policy. Their package comes with a rapid breach response, providing expert support 24/7 in the event of a security breach. Their policies include cover for extortion and cybercrime, as well as any costs associated with hackers causing damage to or disruption to data and any resulting loss of revenue. They also insure your liability which might arise from such an event, as well as data recovery, should data be lost or stolen.
Allianz
Cyber Select is a new addition to the insurance packages offered by Allianz. Whether it’s costs associated with the aftermath of a cyber incident or the loss of revenue incurred by a cyber attack, Allianz can protect your business financially in the event of a security breach. They will provide forensic IT support to investigate a suspected breach, as well as legal support and advice following an incident. Clients have access to a 24/7 helpline and a specialist claims team, as well as free risk management support.
Features of their cover include business interruption cover, which covers the company against lost profits from 12 hours after business gets interrupted. Cyber Select, which can be purchased as a standalone product or as part of a package, is designed to not only protect from the financial ramifications of a breach but to help a company recover and prevent it happening again.
Beazley
Beazley offers several cyber insurance products. They offer tailored solutions suitable for specific industries, such as their Beazley media product designed to cover entertainment and multimedia companies. Similarly, their MediaTech policy is a comprehensive product aimed at technology and business services companies. For large scale businesses carrying significant data security risks, they offer an information security and privacy product to deal with major privacy exposures.
Their most comprehensive package is the Beazley Breach Response policy offering 360˚ protection against cyber extortion, business interruption, loss of critical operational data and other electronic crime. Policyholders have access to a range of pre-breach and risk management services to prevent a cyber incident from occurring. Should the worst happen, their in-house response and claims team are on hand to help you resolve the incident and return to business.
CFC
Whatever industry you operate in, CFC can offer comprehensive cover for multiple sectors. They have several policies particularly suited to companies in retail, healthcare and professional services. They can deliver a quote within less than 24 hours. CFC has twenty years’ experience dealing with cyber claims and boasts the largest in-house response team on the market. For SMEs, they offer tailored policies combining data breach, cybercrime and business interruption cover. For larger corporate companies, their specialist knowledge covers major security breaches and system failures. Finally, they offer a cyber excess option, for those with existing policies to further extend their coverage and limits.
Pen Underwriting
Pen pride themselves on their simple e-traded insurance product, where brokers can access a quote for clients from their online trading platform, Pen Central, by answering just a few straightforward questions. A quote can be generated in just a few minutes, after which you’re only a few minutes away from purchasing a policy. They offer extensive cover, available to any company with up to £600 million in revenue.
Features of their cover include breach costs, costs for damage to data or programs, network failure including loss of income, cyber extortion and ransomware, network security, privacy and confidentiality liability as well as multimedia liability. Cyber terrorism is also included as standard. For companies looking for extra cover, you can extend the policy to include e-Theft and to cover outsource service provider or cloud service provider failure, as well as income loss related to these.
Marsh Commercial
The package offered by Marsh Commercial, formerly known as Bluefin Professions, offers a cyber insurance product designed for professional companies. Their insurance package supports firms in managing the impact of a cyber breach, helping businesses to respond to an incident quickly and effectively to get back to business as soon as possible.
Included as part of their cover are costs related to breach responses, privacy regulator investigation and fines if a company finds itself liable for a data breach. The policy can also cover the costs associated with cyber extortion, as well as the loss of net income incurred by a network interruption or failure. Finally, the policy can cover payment card industry fines and expenses.
QBE Europe
Insurance offered by this Australian-based provider is handled through their European branch, using teams of experts from companies such as Verizon and Experian. QBE policyholders will benefit from 24-hour crisis support with their policy consisting of a range of expert services. These include a forensics team to help you figure out how the cyber breach occurred and steps to take, legal advice to help your company minimise the damage and reduce any regulatory fines, and PR experts to mitigate any reputation damage that the incident may cause.
On top of access to a team of experts from a range of disciplines, all policyholders have access to the QBE Cyber Risk Management portal which consists of a broad range of resources and information on common cyber risks and threats, and how to protect your company. Policies are also available in a variety of different languages, suitable for companies who operate in multiple territories.
Lloyd’s (Broker)
Lloyd’s have access to more than 77 expert cyber risk insurers, combining expert consultancy across a range of disciplines with financial security. Lloyd’s pride themselves on their ability to pick and choose from a diverse market to create a tailormade policy suitable for your business needs. Policies can include breach response, cover for costs associated with regulatory investigations and defence cost, extortion and business interruption. Their reputational harm feature also covers financial losses that a business might incur from losing contracts owing to a cyber incident.
AmTrust Financial
The cyber liability insurance policy offered by AmTrust International helps companies to comply with state regulations when it comes to cyber security and reporting an incident. They cover the costs of notifying customers in the event of a breach, and can usually cover legal fees and expenses associated with a cyber attack. Other features include the possibility to cover the costs involved in recovering compromised data or repairing damaged computer systems.
On top of their foundation level of cyber liability coverage, their policy can cover Website Media Content liability as well as regulatory defence and penalties. This feature addresses the risks linked to violations of privacy, piracy, plagiarism, copyright and trademark infringement, along with defamation, libel or slander relating to your online presence. AmTrust’s strong international presence, operating in 34 countries, make them a particularly good choice for multinational companies looking to boost their security and cover themselves against cyber risks.
NIG
Policyholders with NIG have access to the insurer’s online database, The Hub, where they can keep track of all claims they make. Cover limits can be up to £1 million for data-breach expenses and cyber liability. However, their maximum limit for cybercrime is only available up to £100,000, making it more suitable for smaller companies. Optional additional cover features include data corruption and loss of business income following a cyber event. Additionally, companies can choose to add protection for their hardware to their policy, up to a limit of £5 million.
Companies will benefit from 24/7 support should an incident occur or if they need to make a claim. Through their policy, they have access to IT forensic experts and data recovery assistance to help them get back to business as quickly as possible. Following a data breach, companies also have access to expert legal advice, as well as PR and crisis management support to mitigate the reputational impact of a security breach.
