Back in January 2021, major Insurers were required to clarify their position on cyber-attack incidents in their professional indemnity (PI) policies. Seemingly to coincide with this rising threat and a shifting landscape, the result of this process was an industry-wide reduction in standard cover under PI policies for cyber-related exposures.
It is now more important than ever to understand how it affects you and your business, whether a separate cyber insurance policy is required, and to ensure that appropriate cover is maintained.
As a result of these changes, Cyber Exclusions have been added to many insurance policies by many insurers since January 2021. From our own research, this is something that a concerning majority of business owners do not realise the benefits of purchasing a cyber liability policy.
Whilst a stand-alone cyber liability policy has always been advisable, the introduction of this cyber exclusion now makes it even more important to ensure you have adequate protection for losses arising from cyber-attacks.
If you are concerned, what should you do next?
Firstly, be aware. So, carefully review your current policies alongside your broker and examine any exclusion proposed. The exclusions vary, but as a rough guide you should expect them to apply to any claims from the below:
- A security breach or other unauthorised or malicious access to or use of your computer network or data (including denial of service attacks, computer viruses, ransomware and similar);
- A breach of data protection law or other privacy breach; and
- An unplanned or unintended system failure involving your computer network or access to data stored on your computer network.
Introducing Cyber Essentials
Cyber Essentials is a UK government-backed scheme which was created in 2014. A cyber essentials certification brings many benefits to an organisation, including protection against 80% of the most common cyber-attacks, an increased credibility and reputation, new business opportunities and free cyber insurance cover. The scheme is designed for all organisations as cyber-attacks can impact businesses of all sizes, industries, and sectors.
The benefits of Cyber Essentials
- Protects your organisation from 80% of common cyber threats– The 5 technical controls within the scheme when implemented, helps your organisation protect from 80% of common cyber-attacks and tighten security. The 5 controls are firewalls, secure configuration, control user access, anti-malware and phishing.
- Increased credibility and reputation– Achieving Cyber Essentials certification shows your commitment to protecting your own data and that of your customers and clients. The certification increases the reputation of your business and shows your organisation is taking preventative actions to reduce the threat from cyber-attacks.
- Eligible for free cyber insurance cover– Showing that your organisation is compliant with the scheme means that you could be eligible for free cyber insurance cover, saving you up to £25,000.
Contact us now to find out more about Cyber Essentials