Cyber attacks are no longer a risk reserved for large corporations. From ransomware to data breaches, Irish businesses of every size are increasingly being targeted. Below, we’re answering some of the most common cyber insurance questions, including what it covers, who needs it, and how to get the right policy in place.
What cyber insurance actually protects you against
Cyber insurance is a policy designed to protect businesses against the financial impact of a cyber attack or data breach. This cyber insurance cover can include first-party cover for the business’s own losses, such as incident response and system recovery, and third-party cover for claims from others affected by the incident, as well as the wider fallout, including business interruption, legal costs, and liability to third parties whose data may have been compromised, with privacy liability covering data breach liabilities.
The real cost of a ransomware attack or data breach
Almost every business now holds some form of digital data, whether that’s customer records, payment details, or internal financial information, and almost every business relies on IT systems to operate day to day. Many small businesses and SMEs use cyber insurance to access cyber security expertise as well as financial protection.
A single ransomware attack or data breach can bring operations to a standstill, damage customer trust, and trigger significant costs, both direct and regulatory. In fact, 57% of business leaders think cyberattacks are inevitable. Smaller businesses are often more exposed, as they typically have fewer resources to detect and respond to an attack quickly. With the average data breach costing USD 4.80 million, the scale of potential financial losses is clear.
From incident response to cyber extortion: what’s included
A typical cyber insurance policy cover in Ireland can vary, but policies often include first party and third-party cover options such as:
- Incident response costs: covering IT forensics, system recovery, forensic investigation, and crisis management following an attack, with some insurers also offering threat monitoring as an optional service.
- Business interruption: covering loss of income while systems are down or being restored.
- Data breach costs: covering privacy breach notification, credit monitoring, and public relations expenses for affected customers or employees after a security breach involving customer data or sensitive information.
- Cyber liability: covering privacy liability and security liability claims from third parties affected by loss of customer information or data theft.
- Cyber extortion: covering costs associated with responding to ransomware attacks, including ransom demands and ransom payments where included.
- Regulatory costs: covering legal expenses and regulatory investigations, where policies provide cover for costs arising after breaches, including GDPR notification duties and penalties under Irish data protection rules.
Cover, limits, and exclusions vary between insurers, so it’s worth checking exactly what’s included, and whether options such as social engineering protection are available at an additional cost, before you buy.
What shapes your cyber insurance premium
The cost of cyber insurance depends on factors including the size of your business, the type of data you hold, your existing IT security measures, your security posture, and the level of cover you need. Businesses that store large volumes of customer or payment data typically face higher premiums than those with more limited digital exposure.
Common exclusions can also affect pricing and eligibility, particularly where insurers identify known vulnerabilities, repeated human error issues, or weak controls such as poor security processes or poor configuration management. Getting a tailored quote is the most suitable way to understand your likely cost.
Why Irish businesses choose BBi Ireland
At BBi Ireland, we arrange cyber insurance to help protect businesses of every size against the growing threat of cyber attacks and data breaches. Our experience in this area means we can help you understand your specific exposure, explain where cyber insurance ends and where professional indemnity or cybersecurity insurance with errors and omissions cover may be needed, as errors and omissions cover can help protect against service delivery failures, and guide you through exactly what cover you need.
We help businesses compare cyber policies carefully, including common exclusions such as insider attack scenarios where relevant, along with the security requirements set by cyber insurers and any prior breaches or ineffective security processes identified before the organization purchased cover that could affect eligibility or exclusions, so your decisions support stronger risk management and the level of cover matches your exposure. You can also read our guide on why your business needs cyber liability insurance for more detail on the risks involved.
We work with a range of regulated insurers, giving you options and choices tailored to your business.
We pride ourselves on offering a range of options through experienced insurers approved by the Central Bank of Ireland, backed by our in-house claims team when you need it most.
Get cyber cover in place
If you want to protect your computer systems, business operations, and customer data from the financial losses resulting from cyber incidents, get in touch with BBi Ireland to discuss your requirements and receive a free quote. We’re here to support you every step of the way, helping you find insurance cover that meets your business needs.
Contact us to learn more about how BBi Ireland can help provide protection against cyber risks with suitable cyber insurance cover.
