What is cyber liability insurance?

Cybercrime is a huge threat to most companies, so you must protect yourself properly. One of the best ways to do this is to invest in a professional cyber liability insurance policy from a trusted company.

Our team of experts here at Rigby Financial demonstrate excellent knowledge in this area and has provided a range of cyber insurance policies for companies in a wide variety of sectors. Here, they answer some of the most frequently asked questions about cyber liability insurance, giving you a good idea about what it is and how to protect your business from cyber threats.

Who is affected by cybercrime?

Most businesses, no matter how big or small they are, now rely heavily on the internet and computer software – and this leaves them open to the possibility of cyber attacks.

Data can be hacked. Online security can be breached. Confidential information can be illegally accessed or stolen by a computer virus. In recent years, there have been many high-profile cases of data hacking – including firms such as Uber, Pizza Hut, Yahoo and Deloitte. Anybody with a digital footprint can be affected, which is why it is vital to invest in cyber liability insurance.

What is cybercrime?

Cybercrime is a phenomenon that arose as technology and the capabilities of the internet and email progressed. It is a general term used for many different types of online crime. However, in the business sector, it usually means that your company’s online security has been breached and some information has been stolen. This could include:

• Your customer database
• Confidential customer details like payment information and bank details
• Valuable employment data, such as National Insurance (NI) numbers
• Intellectual Property
• Digital and/or cloud-stored data
• Social Media accounts, passwords and logins

Most cyber liability insurance policies will offer coverage for breaches of all of the above.

What is cyber liability insurance?

Cybercrime is one of the fastest-growing types of organised crime around the world. According to the latest Cyber Security Breaches Survey (2025/2026), 43% of UK businesses identified at least one cyber security breach or attack in the previous 12 months. However, that figure was down from 50% the year prior.

Cyber liability insurance cover is used to guard your business against malicious cyber incidents – helping you to recover any costs suffered if the worst case were to happen. When selecting a policy, you should seek the help of a professional insurance broker – such as Rigby Financial. Our team can offer advice and guidance, helping you to find cyber insurance cover that’s perfect for your business’s needs.

What is covered by a cyber liability policy?

A cyber liability insurance policy may seem like an alien concept to business owners who have run their organisations for years without a hitch. But, unfortunately, with new technology comes new risk – and with new risk comes new forms of insurance to help you manage any potential business interruption.

Cyber liability insurance can cover you against a variety of threats, including:

• Costs accrued whilst repairing any damage that your website or systems may have incurred as a result of a cyber attack, and rebuilding anything that it destroyed
• Costs incurred in the pursuit of the safe return of any lost or stolen data
• Any cost incurred as a result of sensitive customer data theft and the illegal use of your online identity
• Any costs involved in restoration after a cyber extortion incident
• Any compensation you may have to pay should you accidentally find yourself infringing on intellectual property (IP)

Do I need cybersecurity insurance?

Cyber liability insurance is often overlooked by business owners, either because they think it isn’t relevant to their line of work or because they believe their company is too small for it to be relevant. However, if your business relies on computers or handles sensitive customer information (e.g. names, addresses, banking information), you could be vulnerable to a costly malicious cyber incident, making a cyber liability policy essential. 

A security breach could compromise such information, and under the 2018 General Data Protection Regulation (GDPR), a business can be fined up to €20 million or 4% of its turnover in such circumstances (depending on which is higher). You need to protect yourself against potential legal fees and financial losses with cyber liability insurance. A cyber insurance policy offers you bespoke protection for your business, whether it’s big or small, and will be there to protect your assets should the worst happen.

How can companies better manage cyber risk?

There are many simple steps your business can take to help manage cyber threats. It’s important to note that human error is behind many cases of cybersecurity breaches, where the door has been left open for online intruders by accident. Therefore, simply training your staff and ensuring they’re up to speed on the latest online threats can make a huge difference.

You should also conduct a thorough risk assessment of any information stored online or within the company’s services – just as you would with a physical aspect of your organisation. Ask yourself: what would be the worst-case scenario should these systems be hacked? Then, create a plan that prepares you and protects your business if it should happen.

Use secure passwords and logins on all hard drives and install passcode doors throughout the building – restricting entry and reducing the likelihood of device theft. It’s also a good idea to invest in high-quality cybersecurity and antivirus software. The amount you’ll spend on this will pale in comparison to the money you’ll need to pay in compensation if the security of your data is compromised and the private information of your business and its clients is leaked.

What are some of the main cyber risks for businesses?

Several major online or electronic risks may result in breaches of your company’s internet or electronic security. These include:

• Human error – Loss, theft or the accidental allowance of unauthorised access to a device, used for professional purposes, that could expose private or protected information.
• Cyber criminals – Purposefully attacking or accessing your online presence or any data you may have stored, either to smear your company’s image or to steal information. The criminals may target you or your employees with sophisticated emails (or other methods of contact) designed to collect personal, professional or financial information, which they can use for their own benefit.
• Data ‘hostage’ – An individual or illegal enterprise takes data or an element of your electronic arsenal ‘hostage’ and threatens to only restore things to the way they were once they receive a certain amount of money.

What to look for as a cyber insurance buyer

It’s always a good idea to search for a cyber insurance package that covers your company’s specific needs, without spending too much on unnecessary extras. You must ensure that your company’s entire network is covered, not just individual machines or devices. You should also consider whether third-party insurance is required. This not only covers you, your business and its employees, but also any customers whose data you may store on your servers.

If you’re looking to invest in cyber liability insurance, the best option is to seek the advice and guidance of an insurance broker, such as Rigby Financial. It’s important to discuss your particular concerns in depth. Bring the aforementioned risk assessment for reference, and be sure to mention any risks that are unique to your business. Any information will help them to identify essential aspects of your policy whilst eliminating any unnecessary aspects.

How much does cyber liability insurance cost?

The answer to this question primarily depends on the type of policy you opt for and the extent and variety of its cover. A core policy will carry a baseline price tag, and any add-ons will cost extra. Here at Rigby Financial, we can tailor your cyber liability insurance policy to meet your exact needs. To find out how much your coverage will cost, simply request a quote via our online form.

What is first-party cyber coverage?

First-party response cover for cyber liability insurance helps protect businesses in the event of a data breach that compromises customers’ personal data. It covers the cost of a variety of processes that must be implemented to fully protect your organisation.

These include:

• Breach announcements – Essential in the event of a security breach, as you must inform any customers who have been affected, whilst also relaying the steps they should take as a result.
• Credit monitoring – Extremely important post-breach. Cybercriminals may have gained access to your business finances and confidential documents, so it’s important to monitor these carefully to prevent fraud.
• Public relations – All organisations understand that a cyber breach is a PR nightmare, which is why you must implement advertising to maintain your brand’s reputation.

What is third-party cyber coverage?

Depending on the nature of your company and its clients, third-party cyber insurance is likely to be vital. Over the last few years, there have been numerous high-profile data leak cases – including banks and high-end websites – in which customer information has been stolen by hackers for identity theft, fraud, or merely to reveal the hacker’s capabilities.

This is where third-party coverage comes into play. Not only does it help to keep the data of those who access your firm’s website (or utilise its services) safe, but it will also compensate them if they fall prey to cybercrimes, which are becoming more and more sophisticated every day.

How can a cyber data breach happen?

There are many ways in which a data breach can occur, and hackers are getting smarter all the time. With software such as penetration testing tools – originally designed to locate weaknesses in a business’s system – now available for anyone to download, the question is usually, “when will a data breach occur?” rather than, “will one happen at all?”

That is just one way a cyber criminal may access your company’s vital information. If your employees can access data or accounts from remote locations, there’s always the risk of using insecure Wi-Fi connections or misplacing their devices. This is another way your company’s security may be compromised. Many cyber criminals strike from within the company itself. There’s no way to ensure that one of your own employees will not leak your firm’s information, but there are ways to protect yourself and your organisation, should this happen.

What if we store client data in the cloud?

There are many advantages to storing data in the cloud. Important information can be shared with all employees who need to see and approve it without using email attachments, and changes can be made to documents simultaneously across devices. However, as shown by previous high-profile data breaches, the cloud is rarely the safest place to store information.

Client data should be held in a secure server that is only accessible if an individual can satisfy data protection security requirements. If you contact a call centre, for example, you’ll normally need to answer several questions to confirm your personal information  (e.g. date of birth, postcode, mother’s maiden name, chosen password, etc.) before you can access this private data. This approach is much more secure than relying on the cloud. Your insurance premiums will be much more affordable if your clients’ data can be shown to be secure in this way, too.

Where can I go to buy reliable cyber liability insurance?

When searching for cyber liability insurance, it’s always worth conducting an in-depth search into the market. Most insurance companies now offer some sort of cyber liability coverage. However, if you’re new to cybercrime security and struggling to find the right policy for you, it can often help to seek advice from a professional insurance broker. Here at Rigby Financial, we will work closely with you to discuss your business’s requirements and will identify the perfect policy that covers every aspect of your business’s online presence and activity.

Contact Rigby Financial today

If you would like to find out more about cybercrime and how to protect your company, you can find further information in our blog ’10 ways to protect your company against cybercrime’. Once you’re ready to discuss cyber liability insurance with one of our experts, please feel free to get in touch.

We demonstrate strong knowledge and experience in this area and can help find the ideal cyber liability insurance policy for your needs. So, why not call us today on 01744 886077 or send us a message via our online contact form?