Cybercrime: have you checked your business insurance exclusions?
Posted 20th April 2022
Be honest with us, how often do you check the small print in your business insurance policy? You’re busy, there are pages and pages to read through, it’ll be the same as last year, right? Wrong! One of our clients recently contacted us to discuss their business insurance exclusions related to cybercrime. They are insured with a well-known UK business insurance company and have always been covered for cyber incidents. Their renewal notice this year does not cover them for any cyber incidents, computer of digital tech errors, or data losses.
Changes to business insurance exclusions related to cybercrime have started creeping in over the last two years. As ransoms requested by hackers and the number of cyberattacks have increased, insurers have started to question the profitability of offering cyber cover. In 2021 AXA stopped covering ransomware extortion payments to their French clients and other insurers have begun to refuse to cover for anything cybercrime related.
What can you do to protect your business?
Firstly, read the small print. Sit down and go through the terms and conditions of your business insurance with a fine-tooth comb. If your insurance is coming up for renewal check to see if the policy offered is like for like to your previous cover. If it isn’t, ask for a quote with cybercrime cover included.
More importantly though, you should begin a review of your company’s current cybersecurity. With the threat of cyberattacks on the rise, this should be something that every business does regularly. Aside from ensuring that your anti-virus and firewall solutions are fit for purpose, it is worth considering Cyber Essentials certification. Cyber Essentials is designed to help businesses spot loopholes in their current protection provisions and identify ways to fill the gaps. This includes user awareness training which, given that 80% of cyber breaches and attacks start with a fraudulent email, is vital in keeping businesses safe.
What if your business insurance covers cybercrime?
Just because you’re covered doesn’t mean you should be complacent. Insurance is there to help you when the worst happens, but you don’t want the worst to happen in the first place. A cyberattack can have serious implications on businesses whether they are covered or not. Take a moment to consider how you would be impacted by a business interruption or the loss of reputation from a cyber breach. Reputation isn’t something that can be covered by an insurance policy.
No matter whether you are covered or not, you should still regularly review your cybersecurity provision.
LP Networks can help
We are specialists in designing and implementing multi-layered and effective cyber security solutions to help you keep your data and assets safe and secure. If you have any concerns about your business’ current cybersecurity, have noticed that cybercrime is included in your business insurance exclusions, or want to learn more about how we can help, get in touch.