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ABI: Cyber liability insurance to become as important as property insurance for UK businesses

Cyber liability insurance is already vital for businesses in a wide range of sectors, and the number of industries that need this type of commercial insurance is growing every day.

cyber-liability-insurance

It’s no secret that computing has become incredibly important to businesses in recent years and decades, but this rising connectivity comes with its own pitfalls, and any company that uses the internet could find itself dealing with data losses, fraud and deliberate attacks by cybercriminals.

Therefore, the Association of British Insurers (ABI) has said it thinks cyber liability insurance will become as important to UK enterprises as property insurance within the next ten years, and will accordingly be viewed as an “essential business purchase”.

Speaking at the organisation’s cyber insurance conference, ABI Director-General Huw Evans pointed out that at least 80% of large businesses will deal with a cyber security breach in any 12-month period, just 10% have cyber liability insurance.

Online security breaches can cost businesses millions of pounds, and can threaten their viability, Mr Evans said, stating the “stakes are high”.

According to the ABI, the five main reasons why cyber security insurance has become vital for businesses are:

  • Cyber threats advance rapidly – because cybercrime is at the cutting-edge of modern technology and the nature of its threats change quickly, individual firms can find it very hard to stay one step ahead of criminals.
  • Cybercrime is a burgeoning problem – it is one of the world’s fastest-growing types of crime, attracts organised criminality, and operates across all international borders.
  • Businesses are becoming reliant on IT for day-to-day activities – as well as data storage, payment and telephone systems are also commonly forming part of a firm’s computing requirements.
  • Businesses can close or dramatically alter their provisions following cyber failures and attacks – recent government research found 10% of organisations that were affected by data breaches had to amend the nature of their firm as a result.
  • The UK’s commercial insurance sector is already prepared to offer businesses innovative cyber liability protection – currently, the London market is responsible for at least 10% of the world’s cyber insurance business, with most of this originating in the USA.

the-benefits-of-having-cyber-liability-insurance

Total Insurance will work closely with you to get you the perfect cyber liability insurance product for your company at the perfect price. Don’t wait to take out cyber liability cover – criminals could infiltrate your company’s IT network today! Take out this essential commercial insurance now and you’ll thank yourself tomorrow.

Would you like to get covered? Fill in our cyber liability insurance proposal form – we’ll take care of the rest!

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