Understanding cyber insurance

The media go to phrase of the past decade when it comes to cyber insurance has undoubtedly been “Cyber Attack”. Which for you and I means a data breach leading to the theft of valuable data, we’ve seen numerous examples from the fifteen year old American who managed to hack into the files of NASA and the US defence department, to the more tongue in cheek breach which ended in numerous people being caught with their pants down as the extramarital affairs website Ashley Madison fell into the clutches of hackers.

In business almost every company stores information electronically, which of course means we are all able to have some of our most vital pieces of data compromised. However the more complex technology becomes the more difficult it has made not only catching a cyber theft but indeed recognising when a breach has happened whatsoever. The identification of a cyber threat is indeed the starting point when considering what cyber policy is suited to your business and why. So here is some of the lingo to get you started.


  • A virus is a fairly universal term used to describe a piece of software which is generally passed on to your electronics via downloading malicious or corrupted files.
  • Identity theft is when information about an individual is stolen which is specific to him/her alone.
  • Data breach as mentioned above is when any of the information related to your company falls into the hands of a hacker.
  • Phishing is one of the most common attempts by hackers to steal your information and often the most laughable. It often occurs when an anonymous email asks for information about yourself which would allow the sender access to your data, money etc.


The media may often lead you to believe that it is only the largest corporations which are liable to cyber crime however this is not the case. Yes they are often targeted as only one tiny entry point is needed to enter into a library of information but it certainly doesn’t mean SMEs are infallible. Whilst you may not hold as much information as the larger companies you are also far less likely to spend millions of pounds on cyber security and cyber insurance policies, therefore making a cyber breach light work for an experience hacker.

Once your data has been breached it can cause unforeseen damage upon SMEs as the reputation of someone who has fallen foul to cyber attack is often left in tatters and the confidence of clients ruined. Ultimately leading to a loss of business and in some cases hefty lawsuits.



As new forms of cyber attack occur almost daily it is vital that the insurance broker you place your trust in stays in the know when it comes to cyber insurance. At MCM Insurance we will ask you all the necessary questions to make sure we are all in that place to react if an attack should occur, for example is your security software up to date?  Do you have an emergency procedure if an attack is to occur? Maintaining that we work together to protect your livelihood and your business.


Which Policy?

Cyber insurance is quite simply divided into two sections, first party cover and third party cover.

First party cover concerns us protecting your business financially if a breach was ever to occur. Whereas third party cover concerns the coverage of lawsuits which may be brought against a business or individual if he/she fails to protect clients sufficiently.

The risks included in a standard policy are things such as, privacy liability, loss of earnings, business interruption, legal expenses, technological error etc.


How to insure

Contact us today via email: dale.edwards@mcmgroup.co.uk

Or phone on 0161 786 3160