Cyber crime is one of the new and developing risks that have emerged in recent years. Businesses are exposed to a real and present danger of attack yet seven out of 10 business owners have not taken steps to increase their insurance protection in any way.
Cyber crime is on the rise and is currently estimated to be costing the UK in the region of £27 billion a year. According to a UK Government survey 81% of large corporations and 60% of small businesses suffered a cyber breach in 2014. The average cost of a cyber-security breach is £600k to £1.15m for large businesses and £65k to 115k for SMEs.
All businesses rely on Information Technology (IT) infrastructure to some degree which leaves them exposed to the risks of extortion, business interruption, income loss, damage management and repair, and possibly reputational damage if IT equipment or systems fail or are interrupted.
Cyber insurance covers the costs associated with these risks and generally include access to a panel of experts to assist with and manage the incident itself, which can be essential when faced with reputational damage, or regulatory enforcement.
We believe that the poor take up of this valuable cover is due largely to the fact that many Insurance Brokers have been slow to understand this risk and the various insurance solutions on the market.
Franklands is recognised by leading Cyber Liability Insurers as having an expertise in this area and we partner with leading providers to secure extensive and tailored cover, which can include the following:
First Party Cover:
•Loss of Data/Software programmes
Costs and expenses to restore lost or damaged own data due to a virus, hacker attack or other covered cause. This cover is generally excluded under a Material Damage policy
•Network Business Interruption
Your loss of profit as a result of an interruption to your computer network caused by a hacker attack, virus or other covered cause. This cover is generally excluded under a Business Interruption policy
•Cyber/Privacy Extortion; Monies paid in relation to an extortion threat relating to your data or data held on behalf of a third party company including:
•Necessary fees to conduct an investigation to determine the cause of and to end an extortion threat
•Ransom monies (included by certain Insurers)
•Data Breach Costs
Costs and expenses to investigate and notify data subjects who may be affected by a Breach of Personal or Corporate Information following a security failure including credit monitoring
Professional Public Relations consultancy costs to prevent or minimise potentially adverse effects of a newsworthy cyber event
Financial loss resulting from the unauthorized access and use of your telephone systems.
•Outsource Service Providers
Cover extended to a security failure at your OSP which could damage Data, cause you to incur liability to third parties or damage your reputation. Cover includes:
•Costs of reconstituting data and software
•Your network interruption loss resulting from a material interruption to an OSP’s computer system
•OSP costs to mitigate material interruption following a security failure
Third Party Cover
•Damages and defence Costs in connection with a claim brought against you for any breach of personal or corporate data
•Defence costs incurred in respect of any regulatory investigation under Data Protection Legislation. Some Insurers also include payment of fines and penalties where legally permissible
Damages and defence Costs in connection with a claim brought against you as a result of:
•Contaminating a third party’s data with a virus
•Denial of access to an authorised Third Party to its Data
•Theft of network access code
•Destruction, modification, corruption, damage or deletion of Data
•Digital Media Liability
Damages and defense costs incurred in connection with your digital media activities (Website or social media):
•Unintentional infringement of intellectual property rights,
•Libel or Slander
It's time to speak to Franklands...
Please contact us should you require further information
Tel:0330 159 8008