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IT providers can create a strong line of defence for their customers against each of these but even the best security and trained staff can be breached. Cyber insurance policies can ensure that even businesses that are well protected are equipped to deal with an attack and recover as quickly as possible.

1. Ransomware (or an extortionate attack) is malicious software that infects computers and withholds access to a business’s own data until a ransom is paid.
2. Human error continues to be the biggest source of hacks, including when laptops are lost or passwords are stored insecurely; staff training is key to avoid this.
3. Phishing is a social engineering hack used by hackers who masquerade as a trusted entity (e.g. your customer, bank or partner) in order to persuade legitimate users to give up passwords or information.
4. Data hack is the exploitation of a computer or network from an external source for illicit purposes.
5. Zero-day attack is one that’s new and hasn’t been seen before. For example, it could be a new type of phishing email or malware that an attacker uses to access your systems.

Various cyber insurance products are available on the market, and most cover the threats mentioned above. However, you must carefully review your policy documents to understand the assumptions made by the insurer about your business and ensure that you can fulfil these conditions so that your coverage remains valid in the event of a claim. If you're unsure, seeking guidance from a cyber insurance specialist is essential.

Most standard insurance policies do not cover cyber losses. They are typically intended to cover physical losses caused by events like storms, fire, floods, or theft. While some policies may offer limited coverage for certain aspects of cyber incidents, such as legal defence for a data breach, this coverage is usually minimal. It's generally better to have a specific cyber insurance policy to ensure comprehensive coverage for cyber losses.

Cyber insurance, like many other types of insurance, is not a legal requirement. However, it's sensible to consider obtaining cyber cover for your digital assets, particularly in light of the continuing rise in cyber-crime. It's important for anyone using IT in any capacity to assess their risk exposure and determine whether cyber insurance is necessary for their business.

Most industries now rely on technology for smooth and efficient business operations. Any cyber incident could potentially cripple a business, leading to financial losses from liability claims, repair costs, recovery of systems, lost income, extortion expenses, and more. Cyber policies provide the necessary support for businesses to recover from incidents, including legal, public relations, and loss of income.

First-party cover in your cyber insurance policy covers the costs your business incurs as a result of a cyber-attack. Third-party cover provides defence costs and settlement costs for claims made against your business, such as allegations of failing to keep your customers' data secure.

A standard cyber insurance policy usually does not cover claims related to social media exposure, although this can differ from one insurer to another. If social media coverage is a concern, we suggest seeking a social engineering extension, which can provide coverage for social media-related incidents. Remember that the specific coverage details can differ significantly in this area.

Cyber insurance does not eliminate the need for good security practices. Consider this simple thought experiment: would you leave your doors and windows unlocked and open in your house simply because you have home insurance? Well, the same principle applies to your business. It's crucial to safeguard your digital assets. In the event that attackers breach your security measures, cyber insurance can provide a backup to help mitigate the impact.

Yes, it's your organisation's responsibility to protect your customer information. You are liable for any losses and will have to pay any fines or fees resulting from legal actions. Unfortunately, even if you outsource services to other companies, your customers' data is still your responsibility.

Even if you don't store customer information, you likely store employee records and emails. If your network contains any information, it's advisable to consider having cyber insurance. As mentioned in the section that discusses which sectors require cyber insurance, it's a consideration for all businesses.

Please remember that the process for making a claim can vary between insurers. Typically, you would need to call your insurer's 24/7 claims line to report the claim. After that, your insurer will gather some basic details to assess the situation. They should then call you back promptly to discuss an action plan that outlines the necessary services for your claim, which may include:

• Forensics to assess how the attack occurred and actions needed to prevent a repeat attack (including dark web monitoring to check for compromised data)
• Assistance with Information Commissioner's Office (ICO) notification, if necessary
• Credit monitoring
• Legal services/advice
• Public relations assistance
• Coordination with your IT provider to get you back up and running if needed.

The action plan will then be implemented, and normally, your insurer will arrange regular catch-up calls to ensure everything is proceeding as expected. Once everything is up and running, your insurer will work to reach a final settlement of the claim.

If you have experienced any loss of revenue, your insurer will need to see evidence of this. For example, a lost contract or a comparison between last year's and this year's accounts (it may take time to see losses, so this element may not be settled right away).

Unfortunately, with so many cyber claim scenarios, we can't explain how each one would work in practice. However, it's usually a condition of your policy that the first step in a cyber claim is to call and notify your insurer.

1. 24/7 claims line: it's always a good idea to ensure your insurers offer a 24/7 claims line, as a cyber attack typically happens outside regular business hours, and not all Insurers offer this service.
   
   
2. Outsourced service providers: not all insurance policies cover loss of income or additional costs incurred if a hacker targets your technology systems or outsourced service providers, such as a cloud provider or outsourced payroll company. If you're arranging cover, be sure to confirm that this protection is included.

Several types of coverage are available under a cyber policy, the different sections and extensions of which are outlined below. Keep in mind that some coverage may be included as standard with a policy, while others will be optional. If you're unsure, always speak to a broker to discuss what your policy includes. If you don't have a policy in place, they can help determine the covers you need for your business.

First-party covers

• Breach costs: practical support in the event of a data
  breach (electronic or otherwise) for notification, forensic investigations, legal advice.
• credit/identity: monitoring of affected customers and PR / crisis management support.
• Business interruption: cover for loss of income if a hacker targets your systems and prevents your business from earning revenue.
• Extortion costs: cover if your business is held for ransom including the ransom payment and the services of risk consultancy.
  firm to help manage the situation.
• Property damage: cover for the costs of repair, restoration, or replacement if a hacker damages your websites, programs, or electronic data.

Third-party covers

• Privacy protection: cover for defence costs and claims settlements made against you for failing to keep customers’ personal data secure, including the costs of regulatory investigations and civil penalties levied by regulators where allowed.
• Multimedia liability: cover if you accidentally infringe someone’s copyright by using a picture online, for example, or inadvertently defame a third party in an email or other electronic communication.

Additional covers

• Cybercrime and social engineering: cover for financial loss following the theft of money, property, or digital assets, either resulting from a hack of a business' systems or an employee falling victim to a social engineering attack.
• Telephone hacking: cover for the costs of unauthorised telephone calls made by an external hacker following a breach of your computer network, including traditional fixed-line telephony systems and online systems (VoIP, Skype, etc).
• Dependent business interruption: cover for loss of income or additional costs incurred if a hacker targets the systems of one of your technology or outsourced service providers – i.e. a cloud provider or outsourced payroll company.
• System failure: cover for loss of income or increased costs incurred if an employee or supplier's error causes an outage of your IT system.