What’s The Cost Of Cyber Insurance & The Consequences Of Not Being Insured?

Ransomware is a growing business. So, to is the need for cyber insurance. Criminals can download ransomware software off the Dark Web for less than $5 and the amounts they’re charging is increasing. There’s evidence that they are researching their victims & undertaking due diligence to see if you can afford to pay! The average cost of a ransomware attack has risen from $30,000 to $75,000 in the past year & there have been recent attacks costing insurers Millions of Pounds to settle.

So, if you do get attacked, how much will it cost to get everything sorted and back to normal? Here are some average costs of UK claims as paid by Pen Underwriting, a leading cyber insurance provider

  1. A data breach be it accidental or deliberate, in the range of £1,000 to £6,500
  2. A ransomware or extortion attack with all of the legal, forensic, breach response services and payment by bitcoin (assuming you’d know how to pay in bitcoin & to make sure you weren’t paying terrorists which could involve you being prosecuted by the police for funding terrorism…) in range of £50,000 to £75,000
  3. An invoice fraud attack £6,000 to £16,000
  4. A phishing attack including legal, PR & forensic costs £3,000 to £58,000
  5. Email hacking £3,800 to £17,500
  6. A lost laptop? Depending on what was on the laptop £1,000 to £25,000
  7. Any claim for data breach could easily result in your clients/customers/employees suing you at a cost of between £2,500 and £12,500 per person.

If you Google Morrisons it won’t take you long to discover they had a rogue employee who released confidential information about employees and The Court of Appeal said they should have been insured and weren’t. The costs of this action are going through the courts now, but it will cost them Millions. If only they had had cyber insurance.

Firms of lawyers have now moved from PPI claims to class actions against companies who have suffered a data breach. Just look at the USA, if they sneeze there, we catch a cold.

Cyber-crime is big business, this is why having cyber insurance is a must. At its current rate, by the end of 2021 it’s estimated to be costing £6,000,000,000,000 per annum or put another way that is the equivalent of 9 ½ HS2 per annum…. And it isn’t just big businesses that are targeted. According to the FBI it is a case of WHEN every business gets attacked, not IF…

So, what does cyber insurance cost?  Our largest cyber policy is costing the client over £50,000 per annum, our cheapest policy is £100 per annum.  For most businesses it will cost less than £1,000 per annum, not bad for peace of mind. Many of our small and medium sized business clients have got cyber insurance and enjoy peace of mind.

Alternatively bury your PC in the back garden, turn off all of your email and your Credit Card machine and only take cash, which you keep under the bed! Have a nice day!

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