Your business may rely on IT infrastructure to store and process valuable operational or customer information. Your IT systems are vulnerable to cyber security risks, such as online fraud, information theft, and malware or virus attacks.
Some specialist business insurance policies may cover your business for cyber risks but businesses are increasingly buying specialised cyber insurance policies especially if the business relies heavily upon IT systems and websites or holds sensitive customer data eg. banking information.
What does cyber insurance cover?
Cyber risk insurance covers the losses relating to damage to, or loss of information from, IT systems and networks. Policies generally include significant assistance with and management of the incident itself, which can be essential when faced with reputational damage or regulatory enforcement.
Generally cyber risks fall into first party and third party risks. First-party insurance covers your business’s own assets. Third-party insurance covers the assets of others, typically your customers.