Cyber Liability Insurance

What is Cyber Liability Imsurance?

The need for some type of cyber liability insurance is recognised at a level by businesses and organisations, but has yet to become widespread in terms of an understanding of the real needs and risks of cyber security and cybercrime.

Many individuals and businesses who are at risk of some type of cyber crime either believe the risk is minimal, the real risk relates to other people or that they are already covered under some type of commercial liability insurance, or their own domestic household insurance.

The extent to which an individual or business is covered under their normal commercial or household insurance policy is highly debatable, and could be an area of real concern if any potential claim arises.

For people who don’t believe there is a real risk of cyber crime to them or their business, they could be right or they could simply be living in  some type of cuckoo land.

The need for some type of cyber liability insurance, is often referred to simply as cyber insurance will  obviously depend to an extent on the nature of the business or the individual concerned, but they should nevertheless be an understanding of what the real risks are, and whether they can be self managed or whether some type of cyber liability insurance is needed.

The nature of cybercrime and cyber security means that any individual or business with any type of network of computers or smart phones is potentially at risk.


A data breach can be either digital or paper, or a combination of both Such a data breach that she always includes theft of information which is then used in a number of ways to commit some type of crime fraud against the business or organisation, which can also involve either its  employees or its customers.

Such cyber crime or fraud can relate to financial information or products, or simply people’s money, but can also have a much more widespread and devastating effect in numerous ways depending upon the nature and scale of the business or organisation involved.

Cyber liability insurance can provide a wide range of different solutions, both financial and practical in the event of some type of cybercrime or data breach occurring. it is a good idea to research what type of site that liability insurance policies available, and keep a close eye on what insurance products become available in the future.

There is a growing sense that cyber liability insurance is in its infancy, and the need for it will grow massively over the next few years. T

How to develop a Cyber Insurance Plan

A cyber insurance plan is a key element of survival almost, for any individual or organisation who uses the internet as part of their business or personal life.

Such a plan can literally involve cyber insurance, either as a specific cyber insurance policy, or as part of a liability policy such as product liability or e and o policy, or as part of their home insurance.

Most of the focus nowadays is on businesses and organisations and their need some type of cyber insurance, given the huge rise in risk of a data breach and the implications for the organisation,  themselves and any individuals affected by such a breach.

Cyber insurance is both about a specific cyber insurance policy, and about the preventative risk management approach that an individual or a company needs to do.

This is necessary in order both to prevent any data breach in the first place, and be placed to deal with the immediacy of a breach and its implications if it should happen.

For individuals, the growth of the internet and specifically the growth of the internet of things means that over the next two years their lives are going to be wedded to their various devices at home and at work being able to speak to each other.


This means that the risk of a data breach of some sort is greatly magnified, and individuals will need to be aware of their own potential risk and liability scenarios.

Whether these risks are covered under their home insurance or some other type of insurance is unclear at the moment, but it is likely that some type of cyber insurance policy will be needed to mitigate and manage such risks.

For businesses and organisations of whatever size, the risk of a data breach and the cyber risks associated with such a breach are immediate and clear.

There is an overwhelming need for most organisations to have in place a clear plan that reflects both a preventative approach and an incident management approach, along with a specified disaster recovery plan.

The cyber insurance plan needs to focus both on the financial indemnity element of the insurance as would a normal insurance policy, but also very much on the need for an incident management insurance process.

The management of the breach needs to be dealt with in several different ways, and the immediacy of being able to deal with it is of paramount importance.

Some insurance companies offer this incident management process as part of the insurance policy.

If insurers do not, then it’s crucial that the organisation has in place its own management team who can coordinate the various elements of dealing with the breach themselves.