Cyber insurance should become as common a purchase for UK businesses as property insurance within the next 10 years, according to the Association of British Insurers (ABI).
Use of the internet brings with it a vulnerability to dangers including deliberate attacks by thieves and data losses caused by human error. A UK Government survey estimated that in 2014 81% of large corporations and 60% of small businesses suffered a cyber breach with the average cost of a cyber-security breach is £600k-£1.15m for large businesses and £65k-115k for SMEs (source: ABI). Cyber insurance covers the losses relating to damage to, or loss of information from, IT systems and networks. Policies generally include considerable help with and management of the incident itself, which can be vital when faced with reputational damage or regulatory enforcement.
The ABI expects cyber cover to become commonplace by 2025 and points to five key reasons why all businesses should consider purchasing cyber insurance:
• Cyber crime is one of the fastest growing forms of crime in the world.
• Cyber threats are at the cutting edge of technology making it almost impossible for individual companies to keep pace.
• Businesses are increasingly dependent on IT for their everyday activities with not limited solely to information being stored but also telephone and payment systems operating through computer-based technologies.
• Cyber attacks and failures can result in businesses closing or having to dramatically change what they do.
• The British insurance market is stands ready to offer businesses the innovative protection they need.
Amongst that British insurance market, P F Spare Insurance Brokers, keen as ever to remain at the forefront, like to keep our customers one step ahead. As such, we are pleased to be able to offer cyber protection insurance for commercial businesses. To find out more, please get in touch.