Using computers or smartphones for work means your business is at risk from cyber threats and the financial losses that can follow. Cyber threats are rapidly increasing in frequency and severity, in some cases leading to severe financial losses. Causes can range from malicious attacks, such as malware, to human error or technological breakdowns.
Cyber liability insurance from Kingsbridge is a simple, affordable way to safeguard your livelihood.
What is Cyber Liability Insurance?
Also known as cyber risk insurance and cyber liability protection, cyber insurance protects your business from online threats. Cyber insurance covers your business from risks related to your technology and IT infrastructure, such as loss of data, damage to IT equipment and ransomware costs.
What does Cyber Liability Insurance cover?
Cyber liability insurance covers two types of risk, first-party and third-party:
- First-party protects your assets and any costs directly incurred by the business, such as downtime or data recovery.
- Third-party cover is for assets belonging to your clients, plus any legal action that may result from a breach of cyber regulations, such as GDPR.
For as little as £74.50 (plus Insurance Premium Tax), a Kingsbridge cyber insurance policy provides cover against:
- Business interruption costs (£20,000), covering loss of income and other expenses incurred if you cannot conduct business as usual
- System and data rectification costs (£100,000), enabling you to hire expert IT professionals to fix any damage to your computers and system and restore or recreate lost data
- Regulatory defence and penalties (£25,000), helping you respond to regulators and other authorities if you have unintentionally broken their rules or failed to maintain your regulatory obligations
- Cyber extortion and ransom costs (£25,000), if cyber attackers demand a ransom to release your data or threaten to spread information that damages your reputation.
In addition, our policy provides access to ReSecure. This is a dedicated 24-hour helpline and specialist cyber incident reporting service. In the event of an attack, experts will work to determine the cause of your breach, and recover any lost data. They will also get your system and business back in working order as quickly as possible.
Why is cyber liability insurance important?
During the Covid crisis, digital communications evolved from ‘useful’ to ‘essential’, with almost everyone working remotely, whether at home or on the go. As a result, the number of devices connected to each business has vastly increased. This often includes personal equipment, such as smartphones and domestic appliances linked to the Internet of Things.
It’s no wonder Beaming’s Cyber Threat Analysis found that cyber-attacks on UK businesses have surged, increasing by 20% in the third quarter of 2020. Companies wer attacked online 686,961 times during that year—that’s once every 46 seconds.
Cyber-attacks exploded in March 2020, when many businesses were forced to close their premises—an opportunity criminals spotted immediately. Figures show they continue to ramp up their activity as remote working becomes the norm for millions.
Cyber threats are by no means limited to big firms, either. Small businesses and self-employed contractors are also vulnerable to potentially ruinous breaches. Indeed, they are sometimes hit even harder due to fewer resources.
For all those reasons, the right type and level of cyber insurance is vital for any business, contractor or freelancer.
What’s the cost of a cyber security breach?
The cost of a cyber security breach to your business is a combination of:
- Financial loss from cyber extortion, such as paying criminals to release files after a ransomware attack
- Business interruption, if it means cancelling work or clients can’t contact you
- Reputational damage, losing customers because they see you as unreliable or untrustworthy
- Fines or other penalties if you are found to have broken data laws or regulations.
How the right cyber insurance can help
You are responsible for keeping your clients’ data secure. So, investing in the right protection and seeking advice from IT experts is strongly advised. But even with the best defences in place, a breach can still happen. That’s why cyber insurance is necessary to safeguard your livelihood from the numerous digital dangers it faces.
If you are subjected to a malware attack, get hacked, or someone opens a phishing email, it’s good to know you’re protected. Cyber insurance means you’ll have the financial backing to pay for investigation and corrective action. Above all, you’ll have peace of mind, knowing that you’ll get back any money you may have lost.
Why choose Kingsbridge for cyber liability insurance?
- We are specialist insurers of trade professionals, contractors, freelancers, and sole traders
- Cyber liability insurance can be included as an add-on with our comprehensive core contractor insurance policy, so securing all the cover you need is simple
- All Kingsbridge policies are underwritten by A-rated insurers
- Your cyber liability policy includes a dedicated 24-hour helpline as part of your access to ReSecure, a specialist cyber incident reporting service
Frequently Asked Questions
- Is cyber liability insurance a legal requirement?
No, but it is useful for any business that sends or stores electronic data, given that the threat is so high. For example, 37% of UK micro-businesses and 39% of small businesses experienced a cyber security breach or attack in 2020 according to figures from the Government’s 2021 Cyber Security Breaches Survey.
- Do I need cyber security as well as cyber liability insurance?
Yes. You may be obliged to protect your clients’ data, and it’s common sense to do so. It is also good practice to maintain your cyber security—for example, updating anti-virus software at least every 30 days.
- What is not covered by cyber liability insurance?
Cyber liability insurance does not cover deliberate acts, fraudulent acts or claims where unauthorised access cannot be proven. The cover will also only repair, replace or restore assets to the level they were at prior to the claim. See our full terms, conditions, and exclusions.
- Can I include cyber liability insurance as part of my contractor insurance policy?
Yes, cyber liability can be purchased as part of our contractor insurance package. Simply ask the Kingsbridge team today for more information.