Cyber Insurance


Cyber Insurance is now the fastest growing product in the commercial insurance market; both in terms of policies purchased and of claim incidents occurring.

Recent figures suggest your business is SEVEN TIMES more likely to suffer a Cyber attack than a fire and nearly half of UK businesses were hit by at least one attack in the most recent reported year.

Why then do only 13% of UK businesses purchase this cover? Please read the Myth Buster document from CFC Underwriting Ltd, which gives the top 6 reasons why a business may decide against purchasing Cyber Insurance and an answer to each. Cyber Myths

SMEs are being targeted by hackers and cyber criminals and attacks have increased with the rise in remote working. The average cost of a Cyber claim for an SME is £35,000 and rising. Please read the following link from CFC Underwriting explaining 5 main reasons SMEs are targeted. Reasons Hackers Target SMEs

How can a Cyber Insurance policy protect your business if you are subject to a cyber-attack? (NB some covers are optional)

  • Incident response costs – including crisis communication costs, legal and breach notification
  • Ransomware – Your systems are blocked and you are forced to pay a large sum to gain access
  • Extortion – Hackers use the threat to destroy or expose data to extort money from you
  • Social Engineering – Hackers trick staff using fake emails or websites to either obtain confidential information or to extract a payment
  • Business Email Compromise – via human error or a hacker sending out fake invoices from your email account
  • Theft of Personal Funds – of a senior executive officer
  • System failure – Cover is not only for malicious attack and could pay for loss of profits and increased cost of working from accidental system failure
  • Reputational Damage – to reimburse for reputational harm after a cyber-attack
  • Network Security & Privacy Liability – including payment of regulatory fines
  • Media Liability – Including defamation and intellectual property rights infringements
  • Technology Errors and Omissions
  • Court Attendance Costs

You may still feel like your business does not need Cyber cover or are unlikely to face a cyber attack. We would advise reading some claims case studies from CFC Underwriting which detail in real terms the issues and attacks UK Business are facing – CFC Cyber Case Studies

This insurance is not just important for businesses, but all ventures and enterprises including charities, clubs and associations that collect, process and retain critical data of customers, suppliers and third parties.

Here at Citygate, we want to protect your business with a Cyber Insurance policy that has suitable cover at a competitive rate. Please contact your local office today for a quotation or email us at [email protected].