Also known as cyber liability insurance, cyber insurance is coverage for organisations against losses linked to their IT systems and networks. These losses could relate to specific damage or loss of information. This insurance type was designed specifically with the digital age in mind. As the likes of cyber hacks and data breaches became the norm, it was essential for companies to gain an extra level of protection against these threats.

When it comes to cyber insurance policies, these typically provide significant assistance following the incident. This includes managing the incident’s repercussions, which might involve limiting the possible regulatory enforcement or reputational damage. Cyber risks usually fall under either being first- or third-party. Both types are covered by cyber insurance.

It’s true: your company should already be using other insurance policies such as business interruption, professional indemnity, and commercial property insurance. It is also true that they could provide a certain level of protection against cyber risks. However, you should view cyber insurance as a supplement to any current arrangements you have with business insurance.

This is certainly the case depending on how your company is organised. Do you hold a lot of sensitive customer information, including their names, contact details, and banking details? Does your business rely heavily on websites and IT systems? Is card information processed as standard? If you answered ‘Yes’ to all three of those questions, it is important to get cyber insurance coverage.