Every business in every sector should take cyber security seriously. Cyber insurance will offer essential protection during a cyberattack, while also giving you the cover you need to recover from an attack.
Be sure to read our guide to why your business needs cyber insurance.
In this post we will list some key things to look out for in a cyber insurance policy; to help you ensure you get the cover and the support you need for the cyber security risks you face.
Make Sure You Get A Dedicated Cyber Insurance Policy
First, it is important to choose a dedicated, standalone cyber insurance policy, rather than just relying on existing insurance products for cover.
The only way to ensure that you have all the cover you need is to invest in a dedicated cyber insurance policy. This is one area where you simply will not be able to get by with a standard business insurance package.
Does Standard Business Interruption Cover Cyber Attacks?
A standard business interruption insurance policy, for example, won’t cover you for any of the risks associated with a cyberattack, including loss of income while you are unable to trade following a breach. It also won’t cover any legal fees or other expenses that may arise as a result of the cyberattack.
Pay Attention to the Policy Wording on Cover Limits and Exclusions
In particular, you need to pay attention to the policy’s cover limits, and to any specified exclusions.
Cover Limits
The cover limit is the maximum amount your insurer will pay out should you ever make a claim on your cyber insurance policy. A single cyber breach could cost your business thousands. But some cyber attacks carry a much bigger cost. Jaguar Land Rover, for example, recently faced £50m in losses per week as a result of a cyber security breach.
With this in mind, it is best practice to pick a policy offering limits on an ‘any one claim’ basis rather than ‘in the aggregate’. A policy on an ‘any one claim’ basis would be reinstated for each separate claim, meaning you would be covered if you suffered more than one cyber breach during the year you are covered.
Specified Exclusions
Also pay attention to any cover exclusions or conditions. These will vary from policy to policy. It is important to ensure that the policy’s exclusions will not result in any potential gaps in your cover.
Ongoing Support is Everything
The main reason why you need to get a dedicated cyber insurance policy is because only a standalone policy will offer ongoing support during an incident. In fact, when comparing cyber insurance policies, the support you will get during an incident may be a more important consideration than the final settlement you would receive following an incident.
A good cyber insurance policy will include a dedicated support helpline that you could call for support in the event of a cyberbreach or a ransomware attack. This may include assistance in notifying your clients and customers about the breach, and in advising them in action they could take to protect themselves.
The cyber insurance policy may also offer certain risk assessment services. These could help you strengthen your systems in order to make a cyberattack less likely to occur in the first place.
Adequate cover is important. But when it comes to cybercrime, you will need more than a cash settlement following a claim. You should be able to rely on your cyber insurance policy for immediate support the moment you realise that something has gone wrong.
Get Tailored Cyber Insurance For Your Business
James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We can help you find the cyber insurance you need at the best possible price.