What is the difference between Cyber Insurance, Computer Insurance, and Cyber Essentials?
What is cyber insurance?
Data security breaches and cyberattacks are usually covered in a standard business insurance policy – that’s where a solid Cyber Insurance policy comes into play.
Cyber insurance is known by many different names: cyber and data insurance, hack insurance, computer virus insurance, virus insurance, and cyber liability insurance, to name a few. With so much variation, it can be confusing to know what comprises a good cyber insurance policy.
Cyberattacks are not a question of ‘if’ but ‘when’. Most businesses will likely be a victim of a cyberattack at some point, with cybercriminals trying new and innovative methods to gain control of your business’s personal data and access to systems. Using schemes and putting security measures in place, such as Cyber Essentials, can help mitigate the chances of cyber criminals being successful.
What are the main types of cyberattacks?
There are three main types of cyberattacks which are common across the UK and worldwide. These include:
- Hacking – where an external agent accesses your company’s systems.
- Ransomware – Where your data is encrypted, and a ransom is demanded for its recovery.
- Malware – Where your data becomes vulnerable after a phishing attack.
What is typically covered in a standard Cyber Insurance policy?
Cyber Insurance is there to provide cover for activities such as:
- Payment of fines & penalties
- Payment of ransoms & extortion
- Cover for lost or disrupted income
- Cover for physical injury/damage
- The cost of phone hacks
- Cost of notifying your contacts
- Incidents at your outsourced service providers
- Social media risks
Example 1
A small wedding venue was paralysed by ransomware, preventing them from accessing any of their IT systems, leaving them unable to trade or even contact customers, suppliers or staff.
They called their insurer’s emergency helpline, which appointed technical and crisis management experts who were able to restore systems and data, enabling the venue to quickly reopen with minimal disruption.
The total cost to the insurer was almost £25,000, with the policy costing less than £300.
Example 2
A secondary school with 800 pupils was brought to a halt by a virus which locked down and disrupted their data.
The large number of computers and other devices made this a difficult problem to resolve, but the technical experts provided hands-on assistance to get the school up and running as quickly as possible, alongside the legal team dealing with a potential breach of sensitive data.
In the end, the claim cost almost £250,000, all paid for by a policy costing around £3,000
What is computer insurance?
Computer Insurance is coverage for the physical computers which a business owns. Computer Insurance insures computers and electronic equipment against theft, loss and damage, either on a stand-alone computer policy or as business contents insurance included in a Commercial Package or Commercial Combined Policy.
The insurance does not cover businesses for costs associated with data breaches, viruses, hacks, etc. This is normally better covered on a cyber policy.
The cost largely depends upon the value of computers you wish to insure; the cost of adding a computer onto a commercial combined or commercial package policy is normally negligible.
What is Cyber Essentials?
Cyber Essentials is an effective, baseline cybersecurity scheme centred around five technical controls that help protect organisations of all sizes from the majority of commodity cyber-attacks.
Completing the Cyber Essentials certificate gives businesses the ability to assess themselves against the minimum cybersecurity requirements recommended by the UK government.
It is becoming more frequent for contracts between businesses to require a Cyber Essentials certificate for all parties involved. This is especially prevalent in government contracts and supply chains, where all businesses involved need the base level of cybersecurity before working together.
To get Cyber Essentials certified, head to IASME’s website, where you can find all the information and steps. With your Cyber Essentials certificate, you can contact Sutcliffe & Co for your inclusive cyber insurance with the Cyber Essentials scheme.
At Sutcliffe & Co Insurance Brokers, we understand that navigating cyber risks can feel complex. Our team is here to help you identify the right mix of protection—whether that’s cyber insurance, computer cover, or achieving Cyber Essentials certification. Get in touch today for clear, tailored advice you can rely on.
