Cyber Insurance for Business

Even if you don’t trade directly online, if your business relies on email or technology to take care of its day to day operations, any data breach could be catastrophic for both you and your customers. If, for instance, you run a small business with even just one or two employees, you could see your business crippled by multiple compensation claims if your systems are hacked and their data is compromised.

If you have clients who themselves have employees, as a breach of your systems could lead to a breach of their systems. Before you know it, you’ve even more compensation claims and associated legal fees coming your way. If you think your business is fully protected from hackers by antivirus software or is too small to be targeted, consider that cybercrime is constantly evolving, and criminals are actively targeting small businesses because their security systems are thought to be less robust.

When you hold customer data such as names, addresses or banking information, or if your business is dependent on or uses computer systems as part of its activities, then it is important to understand the impact of a data breach, interruption to your systems or a claim for failing to keep customers’ personal data secure.

Currently, it's not a legal requirement for a trading business to have cyber insurance. However, it could give you a competitive advantage if your potential client has a choice between your business and another business that doesn’t have insurance. Many larger clients and government contracts will require cyber coverage to be in place.

An IT professional at a large business discovered a ransomware attack with mass file changes on their network. The policyholder contacted their insurer, initiating a response within 90 minutes. The insurer deployed an EDR tool, assessed the infection's extent, preserved data, and obtained the $2 million ransom note. The investigation uncovered persistent TrickBot connections dating back to a 2018 infection. Over five days, the insurer took essential actions, including imaging systems, offering legal advice, and successfully negotiating the ransom down from $2 million to $200,000. This prompt response mitigated potential losses, saving the policyholder a substantial $1.8 million.