< Cyber Risk Liability Insurance

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Computerisation and the internet have revolutionised the workplace.

Whilst the benefits are undeniable, businesses are exposed to new risks of damage to their own equipment and legal liabilities to others.

Assessing the risk a technology glitch or data breach can bring to your business is now part and parcel of modern life. We have all heard the horror stories in the media, especially the reputational damage it can cause.

According to the Information Commissioner’s Office, 28% of all Cyber incidents in July to September 2016 were in the General Business Sector.

With increasing reliability on technology in all businesses these incidents have a knock-on effect to business cost.

According to UK Government statistics, in 2014, the average cost of a Cyber security breach to a large business was £600,000 to £1,150,000 and £65,000 to £115,000 to small or medium sized enterprises. So, it’s important that you are striking a balance between being bold with your technology, retaining customer trust and protecting your data.

Why Cyber Risk Liability

Whatever the size or nature of your business, it is likely you are reliant on information technology for some of your business activities. Even if you just send and download information, you could be at risk. Cyber Liability is a specialist form of insurance that addresses all modern technological needs and provides comprehensive cover in the event of damage or loss. It provides cover in respect of damage to or loss of information from information technology systems and networks.

Most policies provide assistance in the management of an incident as well. This can be invaluable when dealing with potential reputational damage and/or enforcement action.

Where do we come in?

We make sure we always keep an eye on what’s happening – whether it’s a change in the law or a new trend, we’ll know about it. We use this knowledge to design your Cyber Risk package to meet your business technology needs, basing it on three core principles:


Some Business Combined Policies include an element of cyber cover, but this cover is usually minimal and will not offer the wide protection you may need. This can leave you vulnerable, and we suggest the best way to protect your business is to let us help you identify any gaps in cover and find the best solution for you.


All technology needs an element of protection but you’re more at risk if you hold sensitive data or your business is primarily digital i.e. an e-commerce site. When it comes to a loss or breach, it’s not just the incident itself that needs to be dealt with, it’s also the reputational damage, your customer loss and scrutiny that comes from regulatory bodies.

The best Cyber Risk policies address the balance between first and third party needs. First are your assets and third are your customer’s assets. Here are some examples of how a good Cyber Liability policy can help:

  • First Party: loss or damage to your digital assets; threats and extortion; theft (electronic or equipment); damage to your reputation
  • Third Party: Security or privacy breach and associated legal costs; multi-media liability and its associated legal costs; loss of data in the event of system failure and subsequent compensation payments


The list isn’t exhaustive but we are committed to keeping you informed throughout the process, from your initial review to the renewal date. We want to help you make the most of your technology and help you provide reassurance to your staff, suppliers and customers that you take data protection seriously.

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Advantage Talk | Need to Know - Cyber Crime

For more information please view our
Advantage Talk – Need to Know | Cyber Liability briefing