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Article Provided by PolicyBee

Thinking about getting cyber insurance? It’s a great idea for small businesses, especially when the government says 50% of UK businesses experienced a cybersecurity breach or attack last year.

But not all cyber insurance policies are created equal.

Depending on what you buy, you might not be covered for some of the most common techniques that cybercriminals use. Or for the income you’ll lose if you can’t trade because of a cyber-attack.

What is cyber insurance?

Cyber insurance helps protect your business from the damaging repercussions of cyber-attacks, data breaches, and cybercrime.

If you’re hit by one of these, it’ll usually:

• Fix your systems and get your business back up and running.
• Provide legal and PR support.
• Pay any ransoms and compensation.
• Pay to restore your data from back-ups.
• Pay costs to notify regulatory bodies and data subjects (that’s people affected by the breach).

Sounds great, right? It is! Basic cyber insurance gives you a reliable safety net. But you need to be aware of what it often doesn’t cover.

Covering all your bases

For some types of cybercrime, you’ll generally need to add some extra cover to your insurance.

Social engineering and financial cybercrime are commonly the most important things missing from basic cyber insurance.

Social engineering is a deception and manipulation tactic used by cybercriminals to con you out of your cash. Think phishing emails and fake websites.

Financial cybercrime is where cybercriminals get direct financial gain by infiltrating your systems. Things like identity fraud and payment system hijacking.

If you’re worried about either of these (and maybe you should be), you should check if you’ll need to add them on when you buy your insurance.

No interruptions

If a cyber-attack knocks down your systems, you might not be able to trade as normal. For small businesses, this could cost you thousands of pounds a day. And give your reputation a real knock.

Basic cyber insurance often doesn’t pay you for these missing days when your systems are being restored.

For that, you’ll need cyber business interruption. It pays you a set amount per day. Just as with financial cybercrime, you may need to add this on when you buy your insurance.

Need a broker to take care of your business insurance needs? Click here to get your personalised quote with PolicyBee and get started today!