CYBER crime continues to rise in terms of frequency, cost and complexity, affecting private individuals and businesses alike.

The Covid-19 pandemic, and shift to home working, has seen cyber criminals increase their activity - the Hiscox Cyber Readiness Report 20201 stated a business is now 15 times more likely to have a cyber incident than suffer a fire or theft.

Despite these statistics, the take-up of Cyber Insurance remains surprisingly low.

As a relatively new product, there are some common misconceptions which often result in businesses opting not to purchase the valuable protection afforded by a cyber insurance policy.

“We invest heavily in IT security so don’t need to buy cyber insurance cover”

It is impossible to make systems 100 per cent secure. While investing in IT security will make a business less vulnerable to certain types of cyber attack, unfortunately they will still be exposed to the constantly evolving risk of cyber crime. In addition, many cyber claims and incidents are caused by events originally due to human error.

“My company is too small to be a target for cyber criminals”

Whilst cyber attacks against large companies hit global headlines, cyber criminals also target smaller businesses which are seen as low hanging fruit due to a lack of resources to invest in IT security or provide cyber security training for their staff.

“My existing insurance policy will provide protection in the event of a cyber incident”

Whilst some policies may offer a level of protection, a standalone Cyber Insurance policy is designed specifically to provide protection for emerging cyber risks that are not catered for by traditional insurance policies together with invaluable support services in the event of a cyber incident.

Ryan Parker is Commercial Account Executive at PIB Insurance Brokers in York, one of the leading independent insurance brokers in the UK. We offer a range of Cyber Insurance products from Specialist Insurance providers, tailored for the needs of your business. For advice, email or call 01904 784141.