With 50% of UK businesses experiencing a security breach last year, cyber threats are no longer an "if" but a "when". The need for robust cybersecurity measures and dedicated cyber insurance has never been more critical.
Cyber insurance isn’t just a safety net; it’s a lifeline for businesses navigating today’s digitally driven world. It offers essential financial and operational support if your organisation becomes the target of cyberattacks like hacking, phishing, or ransomware.
But cyber insurance is more than just coverage—it’s a proactive partner in managing risk. Let’s explore what it covers, what it costs, and why it’s a must-have in today’s landscape.
The Growing Threat of Cybercrime
Cybercriminals don’t discriminate. Whether you’re a small start up or a large corporation, you’re a target. In fact, 43% of all cyberattacks are aimed at small businesses, highlighting the need for vigilance across every sector.
The fallout from these attacks can be catastrophic—data theft, financial losses, legal repercussions, and irreparable damage to your reputation. Even organisations with existing cybersecurity tools are often caught off-guard due to incomplete implementation or lack of monitoring.
What Does Cyber Insurance Cover?
Most traditional business insurance won’t protect you from a cyberattack, leaving organisations vulnerable. Basic policies might cover up to £25,000 for data breaches or emergency response costs, but for most businesses, this simply isn’t enough.
Comprehensive cyber insurance covers:
- Data and Privacy Liabilities – Legal costs for breaches of personal or corporate data.
- Cybercrime Losses – Protection against ransomware demands and fraudulent transactions.
- Human Error – Safeguarding against mistakes that leave systems vulnerable.
- Hacking – Including phone and computer systems.
- First-Party Expenses – Covering forensic investigations, customer notifications, credit monitoring, and public relations management.
What Are the Costs?
The cost of cyber insurance depends on factors like:
- Company size
- Industry sector
- Security measures already in place
- Historical claims history
However, the real question is: can your business afford not to have it? Comparing the cost of coverage to the potential impact of a cyberattack often makes the decision a no-brainer.
The Legal Implications
Under GDPR regulations, organisations are required to protect personal data through appropriate technical and organisational measures. Failure to comply not only leaves you open to breaches but also potential fines and compensation claims.
Victims of breaches can claim for both material and non-material damages—including distress—making robust defences and insurance cover non-negotiable in today’s regulatory environment.
Minimum Security Standards for Cyber Insurance
To qualify for cyber insurance, organisations must meet specific security criteria, including:
- Regular backups stored offline or in "cold" locations.
- Multi-Factor Authentication (MFA) for cloud services and remote access.
- VPN restrictions for accessing the network.
- Annual cybersecurity and phishing awareness training for staff.
Failing to maintain these standards during your policy’s term could result in a loss of cover.
Why You Need Cyber Insurance
Cyber insurance isn’t just about protecting your business after an attack—it’s about prevention. Insurers provide resources like:
- Employee training to improve threat awareness.
- Vulnerability assessments to spot weaknesses.
- Expert crisis management and recovery support.
These tools help businesses strengthen their defences, reduce risks, and bounce back faster in the event of an incident.
Get Proactive, Not Reactive
Cyber liability insurance is more than an expense—it’s an investment in your organisation’s future. As premiums rise, the best strategy is to combine strong cybersecurity practices with comprehensive insurance coverage.
At Intercity, we help businesses build robust cybersecurity strategies and ensure they meet insurance requirements. If you become a victim of cybercrime, our team is here to guide you through recovery every step of the way.
Get in touch with our cybersecurity experts today to secure your organisation and protect against tomorrow’s threats.
