Covers the costs of a hack or data breach, including system repairs, data recovery and lost revenue from being offline.
New tech comes with new risks. Cyberspace is crawling with harmful viruses and unscrupulous hackers, and both you and your business need protection from the damage they cause.
Just the smallest, byte-sized chink in your armour is enough. Before you know it, your customers’ confidential data is in someone else’s hands. Or your system is so corrupt you can’t do business.
You can fix what’s broken but that takes time and money. More so if your clients are asking awkward questions about when you’re going to finish their work.
Cyber liability insurance covers the cost of repairing and restoring your systems, data and website following a breach or a hack. It also covers the legal costs involved in giving regulators and customers the bad news, as well as safeguarding your reputation with paid-for PR help. If you need it, it’ll pay for temporary equipment and cover your lost revenue if a cyber-attack stops you trading, too.
You get business as usual. And all without a helpdesk in sight.
Does your business use email?
Does your business have a website?
Does your business store customer data electronically?
If you’ve answered ‘yes’ to any one of these questions, you’re a target for cybercriminals.
That might sound alarmist but the figures speak for themselves: in 2016, half of all UK businesses suffered a cybersecurity incident, with the average cost of an attack for smaller businesses somewhere between £5,000-£20,000. Yikes.
Cyber liability insurance won’t stop a cyber-attack. But it will give you the priceless practical and financial support you need if you’re the victim of one.
Cyber liability insurance covers the time and money you have to spend dealing with a cyber-attack. It also covers the costs of putting your business back together following a hack or data breach.
Included in this is cover for cyber extortion, where a cybercriminal cripples your business with ‘ransomware’ and demands payment to release your systems or website. Your insurance pays the ransom and brings in a specialist consultant to manage the situation for you.
Specifically, cyber liability covers:
Without cyber insurance, these are all things your business will have to pay for. Insurers call these direct losses ‘first-party’ costs. That’s actually a good thing because, unlike professional indemnity insurance, cyber liability insurance policies don’t depend on your customers’ losses (‘third-party’ costs) for your cover to kick in.
That depends, to some extent, on how much IT infrastructure you have. More hardware means more to repair or replace. More software means more data to restore.
You need to take into account the way you do business. Can you still trade without a website or access to other systems? Can you survive without email? Do you take payments online? Do you hold particularly sensitive customer data or images? What will be the consequences for both you and your customers if you’re hacked or held to ransom?
And don’t forget the legal costs. Informing regulators and customers you’ve been hacked costs as much as a solicitor charges you – and we all know how cheap they are.
Whatever conclusion you come to, you can guarantee a cyber-attack will cost you money. And because exactly how much money is very difficult to quantify (because every attack is different), you’re well advised to go for as much as you can possibly afford.
Public liability insurance is for when you go out and about on business, or have visitors to your studio. It’s for claims of physical damage to property and people. Useful if you’re clumsy.
Employers’ liability insurance covers your business if an employee sues it for damages. Claims are usually because they’ve suffered injuries and illnesses as a consequence of working for you. It’s a legal requirement for UK businesses with employees.
Office and property insurance covers the things in your studio (furniture, plants, fixed IT equipment etc) and portable insurance covers gadgets and technical equipment away from the studio (laptops, tablets, projectors etc). If you’re not sure it’s worth insuring, add it all up – it’s probably worth more than you think.
Business interruption insurance means you can still work when your studio’s out of action. Be it flood, fire or flea infestation, you’re covered for the costs of setting up elsewhere and for any lost revenue in that time.
Directors’ and officers’ insurance covers your company bosses. Anyone from regulators to shareholders to competitors can accuse you of not running a business with due care. Worse, directors are personally liable for their actions. The good thing is this insurance covers your defence costs and any compensation you have to pay. So you can put away your chequebook.
Glad you asked.
The simple answer is: we know what we’re doing. Professional insurance is all we do so we know what you need, even if you don’t.
We also know that buying insurance can be, well, a bit of a pain. So we make sure getting yours is quick and hassle-free.
We do all that while treating you like a human being, too. You won’t find a call centre here. Or a phone menu. And we’ve banned nonsense insurance jargon.
Plus, every insurance-related question you can think of is answered in our School of Risk, and you’ll get our quarterly risk advice email – ‘The Waggle’ – to help you avoid problems in the first place.
If you’re after a second opinion, have a look at our customers’ feedback. They’re the ones you should really listen to.