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Although the content of this article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.

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Insuring against cyber crime

How the insurance industry is evolving to counter the threat posed by cyber criminals.

Insuring against cyber crime

As technology continues to advance and evolve, our businesses thrive from its success, increasingly relying on email and the internet to run their operations. However, Stackhouse Poland points out that, for all its benefits, there are risks involved – risks that could damage your business. This is something you must be aware of, and more importantly, must do something about.

However, like technology, the insurance industry is constantly evolving to follow suit, and is ready to respond to any new risks facing your businesses.

Cyber Crime & Cyber Liability

A recent study conducted by the Ponemon Institute, found that a sample of 36 large UK organisations in various industry sectors - including a majority of multinational corporations - fell victim to 1.3 successful attacks per company, per week.

In 2013, the Federation of Small Businesses (FSB) said issues such as hacking, data security breaches, and computer viruses were a “barrier to growth” that could no longer be ignored. The FSB report found that cyber crime is costing its 200,000 members a combined £785m a year – or £3,750 for every small business.

And now, the responsibility for the protection of privacy and personal data falls on businesses. It is your company’s obligation to protect the data and the financial information of its customers.

You may have a potential exposure to cyber crime if you:

  • have a website
  • allow staff to use email and the Internet
  • hold customers’ credit card detail and personal details on your network
  • transact business through your website or rely heavily on email.

You can potentially mitigate this exposure through cyber liability insurance; this covers any liability arising out of unauthorised use of, or unauthorised access to, electronic data or software within your network or business. These policies also provide coverage for liability claims for spreading a virus or malicious code, computer theft, extortion, or any unintentional act, mistake, error, or omission made by your employees while performing their job.

The typical business insurance policy only covers so-called “tangible” assets and electronic data is not considered tangible under the typical policy definition. Cyber liability insurance fills that gap.

Finding a Solution

When working out the amount of cover you need, consider the size of your business and your dependence on computer and email systems. This will ensure that you do not overpay for your policy – and that there are no gaps in the cover.



​Your St. James’s Place Partner can introduce you to Stackhouse Poland which is authorised and regulated by the Financial Conduct Authority and with a breadth of knowledge and expertise relating to insurance matters spanning several business sectors, are well placed to give clients advice on how to insure themselves in line with both the law and the risks facing them.