Financial Lines Products

Cyber Insurance

Cyber insurance covers losses arising from damage to or loss of information from Information Technology (IT) systems and networks.

These threats are very real in today’s interconnected world. A UK survey estimated that between 2022 and 2023 32% of UK businesses reported suffering an attack or breach and the figures rose to 59% for medium sized companies and 69% for large organisations.
The average cost of a cyber-security breach in this period was £4,960.

As a business of any size, it is likely you will rely on IT infrastructure to some degree. If so, you will be exposed to the risks of business interruption, income loss, damage management and repair, and possibly reputational damage if IT equipment or systems fail or are interrupted or hacked. 83% of identified attacks related to Phishing.

In 2022 only 6% of UK businesses had Cyber Essentials certification.

While existing insurance policies such as commercial property, business interruption or professional indemnity insurance may provide some elements of cover against cyber risks, businesses are increasingly buying specialised cyber insurance policies to supplement their existing insurance arrangements, particularly if they:

• Hold sensitive customer details such as names and addresses or banking information
• Rely heavily on IT systems and websites to conduct their business
• Process payment card information as a matter of course.

Our Cyber insurance products underwritten at Lloyd’s covers the losses from damage to or loss of information from, IT systems and networks. Our Policies generally include significant assistance with managing the incident itself, which can be essential when faced with reputational damage or regulatory enforcement.

Generally, cyber risks fall into first-party and third-party risks. Insurance products exist to cover either or both of these types of risk.