What Is Cyber Data Insurance?

In today’s world every business relies on IT, when systems or equipment fails or you cannot access your network due to a cyber incident, your business can sustain the following losses:

• Loss of Income
• Business Interruption
• System & Network Damage
• Social Engineering
• Reputational Damage

Who would need Cyber Insurance?

A comprehensive Cyber Insurance policy will protect your business against these exposures, a business should have a comprehensive cyber policy if they:

• Hold customer details, such as names, addresses, bank details
• Process payment card information
• Rely on IT systems and websites to operate their business
• Have automated manufacturing

What would a comprehensive Cyber Policy cover?

A good Cyber Insurance policy provides cover for losses relating to IT system and network damage, including loss of information from these.  It will also provide assistance and support with the management of the incident itself, which is a major benefit when your business is faced with reputational damage or regulatory enforcement.  Under the General Data Protection Regulations (GDPR) 2018, this new law made several changes:

• Mandatory requirement for all businesses to notify the Information Commission Office (ICO) of any breach within 72 hours of becoming aware of the breach
• A right for individuals to know when their information has been hacked
• Mandatory requirement to notify all individuals affected by a breach of their personal data, where this is deemed by the regulatory to be a high risk breach, which could cause significant harm.
• Substantial fines increased to £20,000,000 or up to 4% of global turnover for non-compliance.
• The implications, costs are significant and demonstrate the need for a comprehensive cyber and data policy, which provides insurance for breach costs and includes the notification costs to affected individuals which can be expensive.

First and Third Party Liabilities

Cyber & Data risks fall into first party and third party liability.