Cyber liability insurance provides coverage for both losses a business suffers directly from a cyber incident, such as a hack or cyber extortion attempt, as well as liability to third parties for damages from security or privacy breaches. It covers expenses related to investigations, notification of affected customers, reputational damage, business interruption, theft, and more. The document recommends that any business that handles customer data, is subject to payment industry standards, relies on IT systems, or has a website consider obtaining cyber liability insurance due to the high likelihood of experiencing a successful cyber attack.

1. Cyber Liability is fast becoming a topic of serious discussion within
boardrooms and rightly so. Cyber risk, in all its different forms,
poses a very real threat to the financial performance of businesses.
New security loopholes are constantly being discovered and the
battle between hackers and system administrators is not one that
your company can afford to lose.
Don't be a passenger. Make sure that your business is in the driving
seat.
Guide to Cyber Liability Insurance
Commercial Insurance │ Private Client Insurance │ Risk Management
Want to know more?
Please speak with your usual
Aston Scott contact or local
office for more information.
www.astonscott.com
Aston Scott Group combines the commercial
insurance skills of Aston Scott Ltd with the risk
management expertise of ASG Risk Management
Ltd. Aston Scott Group plc is registered in
England and Wales, No. 5639290. Registered
office: Malling House, West Malling, Kent, ME19
6QL. Aston Scott Ltd is authorised and regulated
by the Financial Conduct Authority (Reg No.
308048)
Are you a driver or a passenger on
the Information Superhighway?
www.astonscott.com
Who needs Cyber Liability
insurance?
Cyber threats loom for your business even if you have a low level
reliance on your IT infrastructure.
Unfortunately, it’s probably not a question of “if”, but “when” your
company will be affected in some way. In fact, it is increasingly
more likely that there is no such thing as a business that hasn’t
suffered a data breach: you either have and you know about it, or
you have and you don’t.
A recent survey* on behalf of the UK Government estimates* that
81% of large corporations and 60% of small businesses
experienced a cyber breach in 2014; and that the average cost of
the worst cyber security breach is between £600,000 and £1.15m
for large businesses and between £65,000 and £115,000 for smaller
ones; figures that continue to increase.
To establish whether or not your
business is vulnerable to such
attacks, you need only review the
following simple questions:
If the answer to one or more of the
above is YES, then your business
could be vulnerable to a data breach
or loss of vital business services.
1. Does your business hold customer
details; for example names and
addresses or banking information?
2. Is your company subject to a
payment card industry (PCI)
merchant services agreement?
3. Do you have any reliance on IT
infrastructure to conduct your
businesss?
4. Does your business have a
website?
continued...

2. Commercial Insurance │ Private Client Insurance │ Risk Management
www.astonscott.com
What cover does a Cyber Liability policy provide?
Cyber Liability policies can cover both losses sustained by your own business and liability for damages
claimed by a third-party. First-party insurance covers your business’s own property. Third-party
insurance covers the property of others, typically your customers.
First Party Risk Exposures
Hacker damage
Cyber Extortion
Cyber Business Interruption
Theft of Money and loss or damage to digital assets
Loss of third party data
Investigation following privacy breach
Customer notification expenses
Reputational damage
Third Party Risk Exposures
Security and privacy breaches
Investigation of privacy breach
Customer notification expenses
Multi-media Liability
Loss of third party data
What are the next steps?
Cyber-attacks, intrusions and threats are not a problem that can be solved; they are continuous risks to
be managed. Cyber Liability insurance together with effective IT security and risk management practices
will maximise the protection for your business in the face of this very real and increasing threat.
If you are concerned about the implications of a cyber attack on your business and the steps you can
take to protect yourself, please speak with your usual Aston Scott contact or local office for further
information or to obtain a quotation.
*2014 Information Security Breaches Survey, Department for Business, Innovation and Skills (BIS).
(https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/307297/bis-14-766-information-
security-breaches-survey-2014-executive-summary-revision1.pdf)
According to the BIS*, just over half of all large organisations now have some form of Cyber Liability
insurance. Small organisations appear less aware of the risks though, with only 35% reported to have any
form of cover.
Don't take a risk, manage it!
Types of exposure: