How does Cyber Insurance protect SMEs?
Cover under Cyber Insurance policies can be typically split into three key areas that together protect all aspects of a business’ risk:
Liability under a cyber insurance policy works in a similar way to other liability insurance policies – it covers you for damages you’re legally liable to pay to affected parties in the event of a breach of privacy law where their personal data is lost, stolen or incorrectly made available. Whether someone hacks into your system and deliberately steals data, or you unintentionally expose customer details, you’ll be covered for any damages you’re required to pay to the individuals affected.
Cyber insurance policies can also cover the costs that are associated with dealing with a data protection breach. When a breach occurs, your business will be responsible for investigating its cause, notifying people affected – often within 72 hours - and providing them with ongoing help, such as support helplines and ongoing credit monitoring. Businesses will also be covered for their own legal costs and any costs incurred in engaging with specialist Public Relations and crisis management.
Cyber insurance policies give you the option to protect against direct losses due to cyber-crime. Where extortion happens, you are covered for the cost of investigating a threat, as well as the cost of payments to prevent or resolve the threat either to a computer security expert or in ransom payments. Coverage can also include business interruption covering financial loss if a cyber-attack prevents you from using your computer systems.
At Aon we have worked with our insurance partners to design cyber liability and data insurance policies that meet the needs of the following sectors:
* QBE Cyber Response is arranged by Aon UK Limited and
underwritten by QBE Insurance (Europe) Limited.
+ Cyber and Data Insurance for Professions is arranged by Aon UK Limited and underwritten by Beazley.
° Cyber and Data Insurance for Schools is arranged by Aon UK Limited and underwritten by Beazley.
^ Cyber Insurance for Care homes is arranged by Aon UK Limited and underwritten by Hiscox Underwriting Limited.
Aon UK Limited is authorised and regulated by the Financial Conduct Authority in respect of insurance distribution services.
The following products or services are not regulated by the Financial Conduct Authority:
- Breach Response Services provided and facilitated by Beazley
- Cyber risk management resources provided by Aon UK Limited
Cyber Insurance FAQs
How much does cyber insurance cost?
Like all types of insurance the costs will vary depending on your industry, limits and turnover.
Will it cover the cost of ransomware?
Cyber extortion can be arranged as an optional extra and will cover payment of money, goods or services made under duress to prevent or terminate an extortion threat.
Will it cover the costs of any regulatory fines?
GDPR fines aren’t insurable under UK law but the cover we can arrange includes emergency breach response which may help reduce the value of the fines you may receive by dealing with the breach swiftly and effectively.
Will it cover issues that occurred previously?
Cyber-attacks and data breaches are often discovered some time after they first occur. The cover we can arrange will protect you against attacks and breaches from when they were discovered rather than when they happened.
What does cyber and data insurance cover?
Cyber and data insurance can cover the costs of damages and claims expenses you’re legally liable to pay in the event of a data breach or security failure. It will cover the costs of breach response services such as consultants, call centre services and crisis management expenses.
Can it cover the costs of replacing affected equipment?
Whilst cyber insurance doesn’t typically cover physical damage to equipment, it will cover the cost of restoring or regaining access to software or electronic data in your computer systems in the event of it being altered, corrupted, destroyed or deleted.
Will it cover physical data breaches?
While it might be called cyber insurance, you will be covered for all types of data breach, including the loss of client folders or incorrect mailing of documents.
Why do you need to know if our equipment is encrypted?
Similar to household insurance, if you don’t have the basic security measures in place your premiums will be affected as there is a higher likelihood that you will need to make a claim.
Why choose Aon as your Insurance broker?
We are one of the UK’s leading insurance brokers and were ranked 4th (by brokerage) by Insurance Times in their 2021 report (September 2021).
Dedicated client managers who will be there to assist you from start to finish throughout the customer journey.
Cyber risk management resources
Below you will find a series of useful articles, guides and tools that SMEs can employ in order to reduce the threats posed by cyber-crime and reduce the risk of a data breach.
GDPR 3 months on: ironing out the complexities
What is the Impact of Cyber Crime & How Can Businesses Prevent This?
How the Internet of Things is affecting our lives
How does the ‘Internet of Things’ affect our personal and professional lives and what does it mean for the future? Read our guide for all you need to know.
Cyber insurance and phishing - what it covers and what it might not
The rapid emergence of cyber insurance and the fact that until recently, there has been considerable variation between cyber wordings, means that there are a number of misconceptions regarding what a cyber insurance policy covers.
A guide to Cyber Liability and Data insurance
Cyber 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 libellous content on your website.