JMM’s 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 Government survey estimated that in 2014 81% of large corporations and 60% of small businesses suffered a cyber breach.
The average cost of a cyber-security breach is £600k-£1.15m for large businesses and £65k-£115k for SMEs.
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.
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.
JMM’s Cyber insurance which is 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.
First-party insurance covers your business’s own assets. This may include:
- Loss or damage to digital assets such as data or software programmes.
- Business interruption from network downtime.
- Cyber extortion where third parties threaten to damage or release data if money is not paid to them.
- Customer notification expenses when there is a legal or regulatory requirement to notify customers of a security or privacy breach.
- Regulatory and Investigatory Fines.
- Reputational damage arising from a breach of data that results in loss of intellectual property or customers.
- Theft of money, equipment or digital assets.
Third-party insurance covers the assets of others, typically your customers. This may include:
Security and privacy breaches, and the investigation, defence costs and civil damages associated with them.
Multi-media liability, to cover investigation, defence costs and civil damages arising from defamation, breach of privacy or negligence with publication in electronic or print media.
Loss of third-party data, including payment of compensation to customers for denial of access, and failure of software or systems.
Online gaming, betting cyber liability package
In response to the needs of its clients, JMM has developed a Professional indemnity with Cyber Liability programme for online gaming and betting companies. JMM’s programme incorporates four covers to ensure that its clients are not exposed. A combination of Professional Indemnity, Cyber Liability, Multimedia Liability and Data Protection Liability ensures full cover against these risk exposures. The standard limit of cover is £5 million for each of these four sectors. Cover can be extended up to £10 million or more.