Cyber risks insurance

We recently celebrated the 25th anniversary of the internet and it is almost impossible today for many people to imagine the world before it.

Almost every business now has an online presence.

And this can range from a simple website providing some information about the business to a sophisticated etrading platform.

As in the real world, there are risks that businesses expose themselves to by having an online presence and it is important to consider these, and where appropriate, arrange cover to protect against these risks.

Risks can broadly speaking fall into two categories.

Namely risks to you or your business, (First Party Cover) and then there are risks to third parties.

First party cover can include loss or corruption of data through network security breach, unauthorised use of the computer system, computer virus, human error, or accidental damage or destruction of data media.

Additionally, businesses can face a loss or reduction of income following a computer or website failure that prevents or restricts their online trading activities.

Third Party Risks represent the exposure to claims brought by others as a result of you trading electronically, storing or handling data online and these risks can include liabilities from breach of privacy or confidentiality.

It is increasingly common to see high profile businesses in the media for such events. Just last week a major supermarket gai ned s i g ni f i c a nt adverse publicity following a breach of staff payroll data.

Following any such breach cover can also include crisis management with coverage towards the cost of hiring expert assistance to mitigate the effect of the incident - and the costs of notifying relevant parties in the event of a data breach.

It is also increasingly common for businesses to find themselves subject to claims resulting from breaches of copyright or similar infringements.

Many people assume that content on the Internet is freely available to be reused and it is very easy to copy and paste images and text from one website to another.

This carries risks and again businesses can protect themselves against such claims with appropriate ‘Cyber Liability Cover’.

Cyber Liability Cover is becoming an increasingly popular choice of covers for many businesses.

For further advice or information we suggest you contact your usual insurance advisor who will be happy to help you consider your businesses exposures and the covers available to you.