The threat of cyber crime is one of the biggest faced by individuals and businesses worldwide, and yet we still see many clients facing this risk without having protection in place: protection in the form of cyber, data and crime insurance.
Cyber crime can have a catastrophic impact. A virtual virus could spread around the world within minutes, carrying the probability of bringing down national and worldwide networks that we have become so reliant on in our everyday lives.
The role of cyber, data and crime insurance in an overall insurance portfolio has never been as important as it is at the current time. Cyber criminals are always evolving, taking into account new opportunities to exploit businesses in new and different ways.
What does cyber, crime and data insurance cover?
Cyber, crime and data insurance covers 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.
Cyber and data risks fall into first-party and third-party liability. First-party liability cyber cover protects your assets, such as:
- Loss or damage to data or software programmes
- Business interruption from network downtime
- Cyber and data extortion where third party threatens to damage or release data if money is not paid to them
- Customer and/or third-party notification expenses when there is a legal or regulatory requirement to notify them of a security or
privacy breach - Repairs or replacement following system damage
- Regulatory actions and investigations and court attendance costs. Potentially cover for fines, where legally deemed insurable
- Crisis communication costs
- Reputational damage arising from a breach of data that results in loss of intellectual property or customers
Third-party liability data cover protects your customers’ assets, including:
- Security/privacy breaches, investigation and defence costs together with civil damages associated with them
- Multi-media liability, to cover investigation, defence costs and civil damages arising from defamation, breach of privacy or negligence in publication in electronic or print media
- Loss of third-party data, including payment of compensation to customers for denial of access and failure of software or systems
- Digital technology is an essential part of business today. Almost all businesses rely on information technology (IT) infrastructure to some degree, which is why cyber and data security breaches can be so damaging.
If you are concerned about cyber risks or would like to discuss cyber, crime and data insurance, contact Towergate Insurance Brokers on 01604 887300 or northampton@towergate.co.uk
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Towergate Insurance Brokers is a trading name of Advisory Insurance Brokers Limited. Registered in England No.4043759. Registered Address: 2 Minster Court, Mincing Lane, London EC3R 7PD. Authorised and regulated by the Financial Conduct Authority
