Cyber Insurance: Protecting Your Business in the Digital Age

Cyber insurance, also known as cyber risk or cyber liability insurance, is designed to protect your company from modern digital threats such as data breaches, ransomware, and destructive cyberattacks.

While every business is responsible for its own cyber security, the right insurance ensures you’re not left exposed if an attack happens. Cyber liability insurance provides essential financial and practical support to help your business recover.

What Does Cyber Insurance Cover?

Most cyber insurance policies will cover both first-party and third-party losses in the event of a cyberattack or data breach.

First-party cover may include:

• Cybercrime investigations

• Data recovery after a breach

• Computer system restoration

• Lost income from downtime

• Reputation management costs

• Extortion/ransomware payments

• Notification costs for affected customers or clients

Third-party cover may include:

• Legal defence costs

• Damages and settlements

• Claims relating to GDPR or other data protection breaches

Who Needs Cyber Insurance?

If your company uses, stores, or transmits electronic data, cyber insurance could be vital. That data—whether internal business information or sensitive customer details—is vulnerable to attack.

Cyber insurance helps cover the financial impact of a breach or attack, making it an essential safeguard for SMEs. It’s especially critical for businesses handling personal or sensitive data, such as finance, healthcare, or professional services.

How Much Does Cyber Insurance Cost?

The cost depends on factors such as:

• Annual turnover

• Industry sector

• Type and volume of data handled

• Strength of network security

Businesses that handle a lot of sensitive information (finance, healthcare, legal) typically require more protection than sectors at lower risk.

Contact us for a tailored cyber insurance quote.

Common Cybercrimes to Be Aware Of

Even tech-savvy businesses can fall victim to cybercrime. Some of the most common threats include:

• Malware – malicious software that infiltrates systems via phishing or software flaws, allowing hackers to steal data or spy on activity.

• Ransomware – viruses that encrypt files and demand payment for their release. A robust data recovery strategy is key.

• Hacking – unauthorised access to systems or services with the aim of stealing or manipulating critical data.

Read more in our blog: 5 Biggest Cyber Security Threats Facing SMEs (and How to Stop Them).