Recent cyber events have had significant financial and reputational implications for some of the world’s most sophisticated businesses, reiterating that cyber threats must be addressed and managed.
No business is immune from the threat. It is estimated that nearly 50% of UK firms lack advanced cyber defences and the cost of cyber security incidents to March 2016 was put at £34.1bn. Even the most robust defences can be breached.
Despite this, many businesses continue to believe that traditional insurance policies such as Professional Indemnity and Crime will provide cover for losses arising from cyber-related incidents. This will not always be the case. A cyber liability policy is a valuable addition to a business’s defence strategy, particularly where first party losses are concerned and where immediate access to specialist expertise is required to mitigate a loss.