Cyber Insurance – is it worth the money?

Cyber cover is one of the fastest growing parts of the insurance industry because ultimately data breaches can be expensive. This was apparent when the GDPR data rules came into force in 2018 but also again when we saw the mad scramble for companies to set up remote workforces at the beginning of lockdown and thus increasing security vulnerabilities.

High profile data breaches and cyber attacks have convinced companies they need protection.

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Businesses are urged to consider guidance carefully when thinking about taking out cyber insurance and the National Cyber Security Centre (NCSC) – a part of GCHQ – has recently published guidance to help organisations considering cover and highlights seven key cyber security questions for businesses to address.

The cyber insurance guidance has been produced by the NCSC – a part of GCHQ – in consultation with a range of major stakeholders and industry partners, after calls for expert technical advice on the growing cyber insurance market. 

The advice encourages organisations of all sizes to think about how insurance might help in the wake of a cyber attack and contribute to existing risk management strategies. Questions range from what levels of defence are already in place to whether the insurance covers the aftermath of an incident. 

The seven questions senior leaders should be asking themselves include: 

1.What existing cyber security defences do you already have in place? 

2. How do you bring expertise together to assess a policy? 

3.Do you fully understand the potential impacts of a cyber incident? 

4.What does the cyber insurance policy cover (or not cover)? 

5.What cyber security services are included in the policy, and do you need them? 

6.Does the policy include support during (or after) a cyber security incident? 

7.What must be in place to claim against (or renew) your cyber insurance policy? 

Having insurance can help businesses with recovery if they fall victim to a cyber attack by reducing disruption to operations and providing financial protection. However, it is important to recognise that cover cannot prevent a breach happening so it is vital for organisations to ensure they have fundamental cyber security defences in place, such as those defined in the cyber essential scheme. 

Having certification may in some cases even help with getting a discount on cyber insurance, as insurers know you have implemented basic protections. The full cyber insurance guidence can be seen here.

Want to understand how we can keep your business secure? Contact us today or talk to one of our team on 0844 560 0202.

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