Cyber liability insurance

Would I benefit from cyber liability insurance?

  • Do you run a business which relies on computers or the internet?
  • Are you involved in e-commerce?
  • Do you use email – for example, to send invoices?
  • Do you download documents from the web?
  • Do you have a website or send out e-newsletters?
  • Does your business hold personal or sensitive electronic data?

If you answer ‘yes’ to any of these questions, then you might consider taking out cyber liability insurance.

Frequently asked questions

  • What are the benefits of cyber liability insurance?

    Cyber liability insurance can protect your business against the financial losses caused by breaches of your network security, infringements of data protection laws, employee abuse of email or libelous content on your website. These losses might be revenue losses or they might be fines. 

    Viruses, malware and identity theft are common causes of electronic damage. Cyber liability insurance can protect your business not just against external attacks, but also against unintentional damage caused to third parties by your own electronic communications.

    Cyber liability insurance can also cover the costs of data restoration, reputation management and crisis management in the wake of an incident.

  • Can you give me an example?

    If you are a financial adviser and your computer were attacked by a virus, corrupting valuable customer data and disabling your email, your business would suffer from the downtime incurred and the costs involved in repairing the damage. Or if you are a portrait photographer and an employee were to circulate a picture of a client, you could be liable for a privacy claim.

  • Did you know?

    93% of large corporations and 87% of small businesses reported a cyber-security breach in 2012. The cost of such a breach for large corporations is £450,000 to £850,000, while for small businesses it is £35,000 to £65,000*.

    *Source: Cabinet Office

What do I need to consider?

  • Assessing the risks associated with your IT system
  • Regular monitoring of network security
  • Managing user privileges and establishing a policy for mobile working
  • Whether you need a cover limit above the usual £1million to £5 million range

What other business insurance cover might interest me?


Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Aon UK Limited believes to be reliable, Aon UK Limited does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article.

This article has been compiled using information available to us up to 01.07.15.