Why Get Cyber Insurance

We have answers to all your questions. If you have any others, don’t hesitate to contact our team.

Does my business insurance cover me already ?

Cyber is a separate, stand alone insurance policy. Some commercial insurances can and do include some elements of Cyber cover, but these (in general) can’t be relied upon in isolation. Prosure are happy to compare any standard offering a client may have against a bespoke, Cyber policy.

Why Cyber Insurance? Surely my IT provider sorts this out for me ?

IT Companies do help prevent Cyber attacks, but they aren’t in a position to pay business interruption losses, claims for third parties, replace damaged equipment, and much more. This is why businesses need Cyber insurance as well. Just relying on an attack not happening, or your IT security preventing an attack, is no longer a safe sanctuary.

Do I need to be a technical expert to get Cyber Insurance ?

Prosure helps you get the right Cyber insurance policy by guiding you through the quote process, accurately answering question sets and clarifying IT jargon.

What happens if I need to claim ?

Prosure assists you during a claim, helping you navigate the claims process to get you back up & running. The Insurer will:

Provide a dedicated incident manager who will co-ordinate the incident from the outset, bringing in the right experts when necessary.
Allocate Specialist IT forensics and consultants who will identify the type of attack, the extent of the damage and if data has been compromised.
Reputational experts to help minimise any negative impact on the brand, customers or suppliers, across press and social media.
Support throughout the recovery activities, including access to counselling services, available at no extra cost, for any staff affected by a cyber event or online incident.
Contact clients (media/PR) who may have been affected by any data breach.

What do I need in place to get Cyber cover ?

There is no “one-size-fits-all” approach. For example, you need regular, tested data backup, network security, 2FA. Get in touch with Prosure, who will be able to walk you through what is needed to get appropriate cover in place.

Cyber Insurance is essential to protect your business from the financial, operational and reputational damages caused by cyber attacks.

Human-centric threats continue to impact organisations in the UK with reports of direct financial penalties due to phishing up 30% and reports of reputational damage up 78%

Read the Report

Business interruption, data breaches, and reputational damage are just a few potential consequences of cyber attacks. Cyber insurance covers these risks, offering financial support to cover revenue losses, additional working costs and PR efforts, to manage your reputation. In today’s digital-first world, cyber threats are evolving at an unprecedented pace, making cyber insurance an essential safeguard for organisations of all shapes and sizes, especially UK small and medium-sized enterprises, that have limited resources and stretched, IT teams, if they even have one at all. With half of businesses (50%) and around a third of charities (32%) reporting they have experienced some form of cyber incident in the last 12 months [1], the risk is real and it’s not going away. Research shows that 75% of businesses see cyber risk as either a very high (35%) or high priority (40%)[1] yet many of these lack adequate cover against Cyber Attacks; based on the same research, only 24% of businesses surveyed had some form of cyber insurance. However, Cyber insurance provides a critical safety net, offering financial protection and expert support to mitigate the impact of cyber attacks.

Many businesses have become dependent on technology for their daily operations, which might be an e-commerce platform or collaboration tools like email and Zoom. Technology is essential for managing sales, communication, finance, and overall business efficiency. A cyber attack can lead to significant business interruption, financial loss, and damage to your reputation. A cyber attack could cause a loss of revenue, increased working costs, and public relations expenses. Furthermore, you need to be able to get back up and running after a cyber incident; if you can’t, the repercussions could be even worse. Cyber insurance can cover these, helping your business recover swiftly while maintaining customer trust.

Human error remains a significant vulnerability. Even if you have been working with technology for years, employees can make mistakes. It’s all too easy to fall for phishing scams or other social engineering techniques in the heat of the moment. Cyber insurance ensures you have the resources to address these incidents effectively, providing a sense of security and peace of mind that your business is protected.

Investing in cyber insurance is not just about financial protection. It’s a strategic investment that sends customers and third parties a clear message; that you take cyber security seriously. It helps you comply with evolving data protection regulations, covering defence costs, regulatory fines and penalties where insurable by law. This commitment to cyber security can enhance your reputation and attract more business..

[1] Source: Cyber security breaches survey 2024, Department for Science Innovation & Technology

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Cyber Insurance Benefits

We have summarised what we believe to be the most compelling benefits of Cyber Insurance.

1. Every Business is at Risk

In most cases, cybercrime isn’t individually targeted at a particular business or industry. It’s far more likely that sophisticated tools will be used by cyber criminals to search the Internet for system vulnerabilities, with vulnerable systems becoming the target for attack. This means any business, no matter how large or small, can find itself targeted.

2. People Make Mistakes

The levels of awareness about the risk of phishing or social engineering vary greatly between individuals. Some people can spot a phishing email, whilst others remain unaware of the risk of phishing or social engineering. These are the ones that could end up being the weakest link in your cyber security, as they are more likely to fall for such attempts. Effective training can help safeguard against this. However, it’s still all too easy for people to make mistakes, especially if they are tired, under pressure or distracted.

3. Every Second Counts

Cyber insurance is an essential component of any risk management strategy. It seamlessly integrates with your existing plans to ensure a rapid and effective response to cyber attacks. Prompt action can significantly mitigate damage during the critical ‘golden hour’ following an attack. Small to medium-sized enterprises in particular, often lack the necessary resources to handle such incidents alone. Cyber insurance provides coordinated access to a dedicated team of experts, enhancing your resilience against cyber threats.

4. Reputations & Operations Need Protecting

It is not unusual to depend heavily on technology for your daily operations. A cyber attack or data breach can lead to significant business interruption and damage your reputation. Cyber insurance protects against revenue loss, increased operational costs, and PR expenses, ensuring your business recovers quickly and maintains customer trust.

5. Reassure Customers & Suppliers

Cyber insurance clearly demonstrates to third parties and customers that your business prioritises cyber security. It provides reassurance that robust protection measures are in place, to handle any potential cyber attacks.

6. Regulations are Evolving

With the rapid pace of digitalisation, businesses face growing scrutiny under Data Protection Legislation. Cyber insurance may cover defence costs, regulatory fines and penalties where legally insurable, ensuring your business remains compliant and protected.

We estimate that UK businesses have experienced approximately 7.78 million cyber crimes of all types and approximately 116,000 non-phishing cyber crimes in the last 12 months. For UK charities, the estimate is approximately 924,000 cyber crimes of all types in the last 12 months.

Cyber Security breaches Survey 2024
Published 9 April 2024 by The Department for Science, Innovation & Technology (DSIT)

Man explaining why you should get cyber insurance

Still unsure if Cyber Insurance is right for you?

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