![\"Cyber](\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2022\/02\/hand-reaching-from-laptop-cybercrime-concept-shutterstock.jpg\")
<\/figure>\n<\/div>\n\n\nCyber insurance<\/a> (or cyber liability insurance as it\u2019s also known) helps protect organisations from the damaging repercussions and financial fallout of cyber-attacks, cybercrime, and data breaches. <\/p>\n\n\n\n It helps stop attacks, fixes systems, compensates for financial losses (including business interruption), and offers advice to help deal with legal and regulatory issues.<\/p>\n\n\n\n That\u2019s the simple version at least. But to understand what cyber insurance is and does, you first have to understand the threat. And that\u2019s not always easy in view of the complex and constantly shifting landscape that cybercrime occupies.<\/p>\n\n\n\n What it\u2019s important to know, however, is that digital risks and cybercrime aren\u2019t going away anytime soon. With our collective reliance on tech, they\u2019re only increasing and there\u2019s no magic \u2018delete\u2019 button we can press to make them disappear.<\/p>\n\n\n\n That makes it vital to understand what the cyber threat is and what it means for your business. Also, what you can do to prepare your business for a cyber incident and help it survive the aftermath. Because the fallout can be devastating.<\/p>\n\n\n\n <\/p>\n\n\n\n Any sort of digital crisis has the potential to unleash chaos, whether that be a hacker infiltrating your systems or a staff member falling for a fake email. Money or data can go AWOL, and your network can be crippled, bringing business to a halt.<\/p>\n\n\n\n Cybersecurity is a global problem. But closer to home, the government\u2019s 2025 Cyber security breaches survey<\/a> states almost half of UK businesses (43%) and three in ten charities (30%) reported breaches.<\/p>\n\n\n\n Furthermore, 20% of businesses and 14% of charities said they were victims of cybercrime. The larger the business, the more likely they were to fall victim. 52% of those who were targets of cybercrime were large businesses, and 42% were medium businesses. <\/p>\n\n\n\n The point is, no matter what your type of business, we\u2019re pretty much all dependent on tech these days – from email to websites to VPNs (virtual private networks). In fact, with hybrid working now the norm and so many people connecting to remote networks from elsewhere, we\u2019re more reliant on it than ever.<\/p>\n\n\n\n And that makes us sitting ducks for cybercriminals. It also means any kind of digital outage presents a real problem. Because if the tech doesn\u2019t work, nor do we.<\/p>\n\n\n\n <\/p>\n\n\n\n At the top of the cybercrime league table comes social engineering<\/a><\/strong>. It translates as people being innocently manipulated into revealing valuable information or doing something they don\u2019t realise will be harmful. The result is hackers get access to data, information, networks and even money.<\/p>\n\n\n\n Phishing<\/a><\/strong> is the most common type of social engineering. Of all businesses that experienced a cyber breach or attack, 85% of them said phishing was the most common and disruptive type.<\/p>\n\n\n\n Phishing emails appear to be legit and to come from a trusted source. But they\u2019re a guise for persuading individuals to reveal sensitive information cybercriminals can use for fraud. Or to trick them into clicking on malicious links.<\/p>\n\n\n\n A more sophisticated type of phishing, called spearphishing<\/strong>, targets individuals. This type of attack might take the form of a fake email apparently from a regular supplier, asking an employee to pay an invoice using new account details. Cue money going straight into the hands of cybercriminals.<\/p>\n\n\n\n Another more recent and emerging threat is the use of AI. While it can do our businesses a great deal of good, it can also do it harm if not used carefully. It’s important not to share sensitive information with AI tools. And keep your wits about you \u2013 AI is making it easier for cybercriminals to impersonate others too.<\/p>\n\n\n\n <\/p>\n\n\n\n Ransomware<\/a><\/strong> is one of the big boys of the cyber-attack world and packs a hefty punch. Cybercriminals exploit IT security weaknesses or use social engineering techniques to infect a company\u2019s network with malicious software.<\/p>\n\n\n\n Once the ransomware is in the system, it works quickly to encrypt data and lock it down. A message usually appears, telling hapless users that if they ever want to see their data again, they\u2019ll have to pay a ransom \u2013 often in cryptocurrency.<\/p>\n\n\n\n Some pay up, some don\u2019t. Some see their data again, others don\u2019t \u2013 even those who\u2019ve paid the ransom. Cybercriminals aren\u2019t really known for their honourable intentions. And such is the scale of the problem, in 2020 the US made paying cyber-attack ransoms illegal.<\/p>\n\n\n\n Cybercriminals employ other damaging types of malware<\/strong> too. Much of it ends up on computers after users unwittingly click on bad links. Although, frighteningly, what are known as \u2018drive-by attacks<\/strong>\u2019 can happen if you\u2019re simply unlucky enough to visit an infected website. No clicking required.<\/p>\n\n\n\n Malware can also come in the shape of keyloggers<\/strong> or spyware<\/strong>, which allow cybercriminals to record the keystrokes users make \u2013 including password entries. Plus, there are worms<\/strong> and viruses<\/strong>, and a whole lot of other sneaky tricks cybercriminals use to exploit other peoples\u2019 computers.<\/p>\n\n\n\n <\/p>\n\n\n\n The end result of any kind of cyber-attack is broadly the same. A network is compromised (maybe for days), and your business loses money \u2013 either because there’s a ransom to be paid, or systems and websites are down and trade grinds to a halt. Customers, meanwhile, go elsewhere.<\/p>\n\n\n\n A cyber-attack may also mean a data breach and the loss of sensitive data like customers\u2019 personal or payment details. And that can put you in trouble not only with your customers, but with the regulator, which in the UK is the Information Commissioner\u2019s Officer (ICO)<\/a>.<\/p>\n\n\n\n The ICO\u2019s Data security incidents trends dashboard<\/a> displays a running tally of UK data breaches and makes for some scary reading. It shows an average of 29,584 data breach incidents reported to it between 2023 and 2025 \u2013 with 10,054 of them resulting in an investigation or informal action being taken in 2024.<\/p>\n\n\n\n All of which can be very costly for businesses. Not only in terms of fines, which can be up to \u00a317.5 million or 4% of turnover<\/strong>, whichever is greatest. But also, in terms of damage to your reputation.<\/p>\n\n\n\n <\/p>\n\n\n\n Given the clear and present danger cybercrime poses, it seems the best course of action is to do like the Boy Scouts do and be prepared. Because relying on the bloke down the road \u2018who knows a bit about computers\u2019 when your network\u2019s crippled by malware won\u2019t really cut it.<\/p>\n\n\n\n Where cyber insurance has the advantage is that it provides you with a whole team of experts. That means technical experts to recover your systems after an attack. Legal experts to help deal with the regulator and investigations under UK GDPR<\/a>. And crisis PR experts to manage your reputation.<\/p>\n\n\n\n Plus, it does it all quickly. Most cyber insurance companies have a 24\/7 response line you can ring for immediate help. That\u2019s important, because the longer an incident goes on, the greater the damage \u2013 on several fronts. It makes getting back on your feet again as soon as possible vital.<\/p>\n\n\n\n You might also be worried about social engineering and financial cybercrime. You’re right to be, they’re two of the most common forms of cybercrime. The good news is, you can easily add extra cover on for these. As well as for business interruption, which pays out every day that your business can’t trade due to a cyber-attack.<\/p>\n\n\n\n <\/p>\n\n\n\n Cybercrime is no longer a futuristic concept, it\u2019s very much the here and now. And as the opportunities for it grow in line with our ever-heavier reliance on tech, the problems it causes are only going to multiply.<\/p>\n\n\n\n Let\u2019s face it, when would-be hackers can go on the dark web and buy ready-made malware packages for just a few quid, it doesn\u2019t bode well.<\/p>\n\n\n\n The fact is, cybercriminals are smart. They\u2019ve got the know-how at their fingertips and they\u2019re constantly probing for vulnerabilities in our security set-ups. Put that together with the fact your average tech-user isn\u2019t quite so cyber-savvy, and you have a recipe for a pretty uneven fight.<\/p>\n\n\n\n Where cyber insurance can help is by putting the battle on a more even footing. It may not be able to prevent<\/em> a cyber-attack, but it can give your business the tools it needs to deal with one quickly and survive. And survival of the fittest, after all, is what being in business is all about.<\/p>\n\n\n\n Read more about cyber insurance<\/a> or ring 0345 222 5391<\/strong> to talk to an expert about it.<\/p>\n\n\n\n Image used under license from Shutterstock.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Cyber insurance (or cyber liability insurance as it\u2019s also known) helps protect organisations from the damaging repercussions and financial fallout of cyber-attacks, cybercrime, and data breaches. It helps stop attacks, fixes systems, compensates for financial losses (including business interruption), and … Continue reading What is the cyber risk and why do I need cyber insurance?<\/h2>\n\n\n\n
What are the biggest cyber threats to my business?<\/h2>\n\n\n\n
What other kinds of cyber-attack do I need to know about?<\/h2>\n\n\n\n
End game<\/h2>\n\n\n\n
What does cyber insurance cover and how can it help?<\/h2>\n\n\n\n
Survival of the fittest<\/h2>\n\n\n\n