Cyber Insurance v Cyber Essentials Certification – Do I Need Both?

Cyber security has been a serious problem since the beginning of our digital age. A new way of trading represents a new opportunity for theft and fraud. Cyber crimes are common and growing in frequency. Even the best efforts of software security specialists are not always sufficient to defend against the most sophisticated of attacks. If prevention can’t be 100% effective, then businesses need other remedies to protect them against the potentially devastating effects of cyber crime.

What is Cyber Essentials Certification?

In 2014, the UK government, recognising the omnipresent threat from cyber criminals, introduced its Cyber Essentials certification scheme. Developed in partnership with industry, its original purpose was to provide security in communications and transactions between businesses and the government departments with which they were authorised to trade. It prescribed basic controls applicable across all sectors and, under the operational control of the National Cyber Security Centre (NCSC), it aimed to provide protection from 80% of the most basic cyber breaches.

It was quickly adopted by businesses that were not directly involved with the government and became accepted as an entry-level set of standards. However, there are two drawbacks to the scheme. One is that 80% protection is a long way short of 100%. The other is that the insurance it incorporates offers cover of only £25,000, grossly adequate in many cases. Ransomware attacks alone lead on average to ransom demands of £100,000.

What is Cyber Security Insurance?

No sensible business would fail to have insurance cover for risks such as fire, flood and professional negligence. In many industries, it’s almost impossible to trade without indemnity insurance and cover for both occupier’s liability and public liability. In 2018 61% of corporations and 31% of small businesses reported criminal incidents. 60% of small businesses cease trading within six months of a successful attack. It is statistically much more likely you will fall victim to cyber crime than to any other disaster, so cyber security insurance should be a priority.

With a cyber security policy, you can choose the level of cover that is realistic for your business, with most insurers offering up to £1 million as standard although limits are available from £100,000 to £5 million. Policies will cover losses in relation to damage to IT systems and networks as well to the loss of information from them. They also offer considerable help in managing the incident and its consequences.

First-party insurance covers the losses your own business may suffer, such as interruption of business, reputational damage and ransom demands. Third-party insurance covers damage to the assets of others for which you are responsible, including compensation and the costs of investigation.

Reflective IT provides the perfect cyber insurance solution. We work with our partner Cyber Tec Security Limited to offer our clients all the advice and assistance they need in qualifying for the government’s Cyber Essentials certification. We recognise that this is an important first step towards the most substantial protections currently available.

Having aligned your company with this basic standard, it is then a natural progression to the greater security of full cyber insurance. Cyber insurance can offer cover up to £1 million and this applies to a much broader range of crimes, breaches and incidents than the free Cyber Essentials policy.

Never assume that your business is safe from attack. It is one of the modern world’s biggest causes of business loss and even failure. Let us take care of all your cyber security needs so you can get on with running and expanding your successful business. Not only will you enjoy exceptional protection but you’ll have absolute peace of mind.

Reflective IT is one of London’s leading providers of IT support. We help our clients every single day. With our cyber insurance, you can add a crucial extra level of safety to give your company unparalleled security. It’s the best decision you can make.

Call us today on 0207 317 4535 or email [email protected]

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