The vast majority of businesses will rely on IT systems to store and process valuable operational data and customer information. IT systems are vulnerable to cyber security risks such as scams, fraud, information theft and malware or virus attacks.
A business is responsible for its own cyber security but in the event of a cyber attack the right insurance policy that covers cyber liabilities may help your business recover. See cyber security for business.
What is cyber insurance?
Cyber insurance or cyber liability insurance is a type of insurance cover that aims to protect your business from IT threats and covers you if your systems or data has been lost, damaged or stolen in the event of a cyber attack.
See cyber risk insurance.
What does cyber insurance cover?
Most cyber insurance policies generally cover first party and third party costs relating to a cyber-attack.
First party cyber insurance covers damage to your business such as the cost of investigating the cyber crime, restoring IT systems, recovering lost data, reputational damage, extortion payments demanded by cyber criminals and costs relating to business shutdown.
Third-party cyber insurance covers the assets of others, typically your customers and any potential claims against you including damages and settlements as well as legal costs to defend your business.
Does my business need cyber insurance?
If your business uses, sends or stores electronic data you could be vulnerable to cyber crime. Cyber insurance could help you with financial and reputational costs if your business is ever the victim of a cyber attack.