What is cyber insurance?
Cyber insurance is a type of specialist business cover dedicated to minimising the impact of threats that come with using the internet – it may be a helpful product, since the cost of digital incidents can be high, and no business knows what is around the corner.
Such risks include cyber crime, which can take many forms – fortunately, Hiscox insurance covers computerised attacks designed to disrupt or prevent access to a network, device or system.
An unsuspecting employee might click a malicious link, locking everyone from the email system – this is known as phishing. Alternatively, a hacker could manipulate website databases via SQL injection or use ransomware to demand steep sums of money.
Digital threats can also arise from within your business – an employee may accidentally share sensitive customer data, for instance.
Cyber insurance can assist financially in such instances, by funding recovery services and even helping with privacy liability costs if your business faces investigation.
Cyber insurance – our guide
Watch how Hiscox cyber and data insurance helps a business recover from a ransomware attack by deploying a team of IT experts.
Do I need cyber insurance?
Any business, contractor or freelancer using the internet as part of their work could fall prey to cyber crime or face a data breach which insurance might help to resolve.
This means enterprises of all shapes and sizes could stand to benefit from cyber insurance. Nonetheless, certain professions may have a greater need than others.
If your business operates primarily online or you handle large amounts of information, then cyber cover could play an important role in risk management.
A marketing agency which experiences accidental data loss may face a privacy complaint leading to steep legal fees, for instance.
Meanwhile, an IT consultant who relies on multiple software packages could lose income if these are locked by ransomware.
Management consultants and accountants could require reputational support if a cyber-attack impacts their public image, while insurance brokers may incur additional expenses as they race to recover a compromised system – all kinds of professions can benefit from having the right cyber cover in place.
Not sure what you need?
Tell us about your business – we’ll help you to build your cyber insurance quote and explore any other insurance needs.Build my cover
When should I get cyber insurance?
Cyber crime impacted more than 46% of UK businesses in 2019 and 2020 according to data outlined in our small business guide to cyber-attacks.
The stakes are getting higher, too. The Hiscox Cyber Readiness Report showed median losses increased by 600% in a similar period.
These problems affect businesses of all sizes. Start-ups may encounter social engineering trickery, such as phishing, as soon as they begin communicating digitally.
Likewise, any company with a website could experience hacking – and data breaches could affect the very first spreadsheet.
This means it may be smart to consider cyber security, and relevant insurance, from the early days of doing business.
How much cyber insurance cover will I need?
The optimal amount of cyber cover for your business depends on how much it would cost to get back on track after a worst-case-scenario cyber-attack or data breach.
This approach helps to ensure you aren’t left with insufficient funds in the event systems go down for an extended period, or criminals make a big ransom demand.
Understanding the nature of cyber threats may help you to recognise the extent of risk to your business.
The Hiscox CyberClear Academy could help with this – it’s an online training scheme that cyber policyholders receive automatic access to.
Is your business cyber ready?
Tell us about your business and answer a few quick questions about your cyber practices. We’ll give you a cyber health check rating to help you understand any risks and how you can improve.
What’s included in your cyber cover?
At Hiscox, we know the impact of cyber security events can be wide-reaching, so our insurance provides cover to match. It spans direct losses to your business, response costs and fees for recovery services.
Your cyber insurance cover includes:
- Protection against GDPR non-compliance claims
- Compensation for loss of income due to a data breach
- Help to recover your position where there’s reputational damage
- Forensic investigations to aid data recovery, plus legal advice
- Help notifying regulators after an attack
- Repair or replacement if cyber events damage your equipment
- Indemnity for losses incurred if your supplier faces a breach
- Consultancy support
- Liability support if someone alleges you’ve transmitted a virus
Hiscox is rated 4.8/5 on Feefo as of September 2021, based on 2,985 reviews. We've also won awards.
Cyber insurance FAQs
What examples are there of cyber crime?
Examples of cyber crime often hit the news. Large organisations have been held to eye-watering ransoms, as was the case with the WannaCry ransomware attack, or mass phishing attempts result in ordinary people losing large sums.
Read examples of recent cyber-attacks to learn how instances of photograph theft and cloud-based data breaches have affected well-known organisations.
Are cyber criminals targeting SMEs?
Cyber criminals can and do target small and medium-sized enterprises (SMEs), since most businesses use technology, from large financial services firms to small hair salons using digital forms for bookings.
Read our Cyber Readiness Report to discover the cyber risk profiles of small and large businesses. We also have a report dedicated to statistics in the technology, media and telecommunications (TMT) sector.
Are there any real-life examples of Hiscox cyber insurance claims?
Yes – one example of a Hiscox cyber insurance claim started when a customer of ours arrived at the office and quickly noticed something wasn’t right.
They’d recently upgraded systems to boost speed for customers. Unfortunately, hackers were able to lock the servers.
Specialists were drafted in to regain control of the servers, manage reputational damage and identify gaps in the company’s cyber security systems. Read the full story to learn the depth of support Hiscox can provide.
Cyber insurance articles and guides
Cyber insurance articles and guides
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