I often get asked by people “How many businesses actually buy cyber insurance?”. My quick response is “not enough” however, I always go on to explain why I think this is.
I believe businesses turn down the opportunity for a cyber insurance quotation for three main reasons which are now out of date:
- Cover limitations
- Quotation process
Each of these should no longer be an obstacle for a business considering a quotation.
Firstly, let’s look at price. Whether it’s your commercial combined, fleet or professional indemnity insurance cost is always a factor, but you make that decision after you have received the quotation. Many SMEs and corporate businesses will be pleasantly surprised at the cost of cyber insurance. Obviously, it depends on your trade and how much sensitive data you hold, but we are finding clients to be more accepting of the premium vs the risk posed by falling victim to cyber crime.
Cover limitations is one of my favourite reasons why businesses turn down the opportunity for a quotation. Cyber underwriters continue to evolve their products to meet the evolving needs of businesses and the risks they face. Basically, the insurance is a LOT better than it was ten years ago.
A few providers led the way such as CFC and Hiscox, however the products offered now by the likes of NMU and Aviva are now excellent options too. The key role the broker plays in this is explaining the cover and how it impacts the business. For example, an accountant may be more concerned with protecting their data whereas a manufacturer’s priority is more likely to be ensuring that they are able to produce their goods to meet their orders. As with other insurances, each business is different and it is our job to arrange suitable cover tailored to specific business needs.
Finally, the quotation process. In particular for SMEs this is a non-event. We often hold the information required to obtain a quotation from the commercial combined policy. If not, we may need to ask one or two additional questions. For larger businesses or businesses that hold high amounts of data they may need to complete a proposal form similar to that of professional indemnity insurance. Either way, it’s certainly something that is much easier than it used to be.
In most cases, quotations can be requested quickly online by clicking here.
My advice to every business is to get a quotation each year for cyber insurance. Once you have it, it’s up to you whether you take it or not – however, you’ll be able to make an informed decision based weighing up the cover provided against the cost of the policy, as you would with any other insurance policy you take.
Head of Business Development