Will your business interruption insurance cover a cyber event?

Will your business interruption insurance cover a cyber event?

The recent news reports on Tesco, Yahoo! and TalkTalk show us that Cyber incidents are on the increase. However, Cyber attacks are not just affecting larger businesses.

'9 out of 10 large businesses and suffered a significant cyber-attack in the last 5 years'

'In 2015, 74% of small businesses suffered a breach, up from 60% in 2014'

We are aware of an incident involving a taxi firm who lost access to their computer network for 3 days following a ransomware incident. This meant they had no access to their contacts, pre-arranged bookings or email and therefore no income for that period.

'The average length of disruption for a small business is 7-10 days'

The business interruption section of most standard commercial combined or office insurance policies will only provide cover for a financial loss if there has been damage to the property by an insured peril such as fire or flood etc. but under most of these policies a Cyber incident is not an insured peril.

However, this can be covered by a Cyber Liability policy, which would not only cover the loss of income caused by the actual incident, but also cover any loss of income caused by your loss of reputation following a breach.

For further information about Cyber Liability insurance, please visit the website of our specialist insurance scheme by clicking here

If you would like to receive information about the training available to help prevent an incident, please feel free to contact us.

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