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This month's insurance update!
Welcome to the West Craven Insurance February Newsletter. This month, we provide some helpful advice to keep you updated with the latest industry changes.
In particular, we take a look at:
- Car insurance - tips you need to know
- Most common facts and misconceptions about life insurance
- Travel insurance top tips
- Cyber insurance for beginners
We hope you enjoy this month's edition!
‘Inexpensive’ ways to protect your home as winter approaches
HEATING your home in the winter is a necessity for most Britons as temperatures are predicted to plummet over the next few weeks. But is your boiler up to it? Here's how to prepare and protect your system and avoid costly repair jobs.
Click here to read ‘Inexpensive’ ways to protect your home as winter approaches.
How workplace safety will evolve this year
Many firms are asking staff to return to work in the office. We are no longer required to self-isolate with Covid and there is no obligation for staff to tell employers if they test positive. So what does this mean for workplace safety in 2022?
Infection prevention
Many employers are experiencing an increased expectation from their workforce to keep staff safe and well. Employers should continue to prioritise infection prevention and control, where possible increasing ventilation, reducing contact between employees and keeping the workplace clean.
Remote working obligations
Now that businesses of all types have adapted to remote working, many have embraced it. Some have even altered recruitment policies to widen the pool of talent and actively recruited people on remote-working contracts.
In the rush to shift to remote working in 2020, a large number of employers may not have taken the time to complete home-based working risk assessments. Now that remote working is here to stay, it is important that risk managers take seriously the health and safety responsibilities of people working at home. From electrical equipment to posture, employers have a legal duty to take appropriate measures to ensure their staff have a safe working environment outside of the workplace.
Mental Health
Employers across the country are placing mental health and wellbeing high up on their agenda, offering training to line managers and appointing roles such as a mental health first aider. In 2021, The Health & Safety Executive’s annual report on workplace health and safety statistics, showed 451,000 people suffering from a new case of work-related stress, depression, or anxiety. That was a 30% year-on-year increase and we expect that figure to rise again.
Some employees will not feel comfortable returning to pre-pandemic working patterns. They may need help managing a phased return to the workplace, along with psychological support around coping with anxious thoughts.
For others, the last two years working from home may have taken a toll on their mental health. Employees working from home are more likely to feel isolated compared to those in a workplace, sometimes resulting in anxiety, depression and a significant lack of motivation. Employers should be reassuring employees that they can ask for help and receive support if they need it.
Disputes linked to safety concerns
Risk managers need to be aware of the potential for unrelated disputes to play out in a workplace safety context. An employee with a grievance about terms of employment, a flexible working request or even a performance-related issue, could latch onto workplace safety as a justification for a certain course of action.
It is more important than ever for risk managers to work in partnership with Human Resources departments as well as individual line managers, ensuring processes are well-documented and paper trail management is scrupulous.
Now is a great time to ensure your insurance policies cover you for all the risks to which you may be exposed. To discuss any aspect of your company’s insurance policy portfolio, get in touch.
Have you sufficiently prepared your car for the spring season?
As the warmer weather sets in, days become longer and the evening skies are brighter, we know spring has arrived.
Throughout the winter, we’re all guilty of neglecting our cars’ needs. After all, spending time out in the cold, snowy weather, checking fluid levels, testing brakes and cleaning from top to bottom is not everyone’s cup of tea.
So, why not treat your car to its very own spring clean this month? Here are three things you can get started with.
Do you need new wipers?
The snow, rain, and icy weather that we encounter throughout the winter can mean that you need new wipers by the time spring arrives. If you notice your windscreen is streaky or still dirty after you have cleaned it, this may be a tell-tale sign that now is the time to invest in some new wipers.
Have you tested your brakes recently?
Signs that show your brakes may be wearing include squeaking or grinding noises when applying pressure to the brake pedal. Brakes can be professionally tested and fixed during a routine service, ensuring you, your family and your car are all safe!
Did you know that leaving your car dirty can cause damage?
With gritted roads and melting ice, your car can get particularly dirty during the winter. Now that spring has arrived, why not get your cleaning products out and make your car look new? Leaving dirt on your car can lead to micro-scratches and rusting paintwork – not something any car owner wants!
Is your car insurance policy up for renewal soon? Our knowledgeable experts are here to ensure you take out a sufficient policy that covers all your needs. Get in touch today to find out more.
How workplace safety will evolve this year
Many firms are asking staff to return to work in the office. We are no longer required to self-isolate with Covid and there is no obligation for staff to tell employers if they test positive. So what does this mean for workplace safety in 2022?
Infection prevention
Many employers are experiencing an increased expectation from their workforce to keep staff safe and well. Employers should continue to prioritise infection prevention and control, where possible increasing ventilation, reducing contact between employees and keeping the workplace clean.
Remote working obligations
Now that businesses of all types have adapted to remote working, many have embraced it. Some have even altered recruitment policies to widen the pool of talent and actively recruited people on remote-working contracts.
In the rush to shift to remote working in 2020, a large number of employers may not have taken the time to complete home-based working risk assessments. Now that remote working is here to stay, it is important that risk managers take seriously the health and safety responsibilities of people working at home. From electrical equipment to posture, employers have a legal duty to take appropriate measures to ensure their staff have a safe working environment outside of the workplace.
Mental Health
Employers across the country are placing mental health and wellbeing high up on their agenda, offering training to line managers and appointing roles such as a mental health first aider. In 2021, The Health & Safety Executive’s annual report on workplace health and safety statistics, showed 451,000 people suffering from a new case of work-related stress, depression, or anxiety. That was a 30% year-on-year increase and we expect that figure to rise again.
Some employees will not feel comfortable returning to pre-pandemic working patterns. They may need help managing a phased return to the workplace, along with psychological support around coping with anxious thoughts.
For others, the last two years working from home may have taken a toll on their mental health. Employees working from home are more likely to feel isolated compared to those in a workplace, sometimes resulting in anxiety, depression and a significant lack of motivation. Employers should be reassuring employees that they can ask for help and receive support if they need it.
Disputes linked to safety concerns
Risk managers need to be aware of the potential for unrelated disputes to play out in a workplace safety context. An employee with a grievance about terms of employment, a flexible working request or even a performance-related issue, could latch onto workplace safety as a justification for a certain course of action.
It is more important than ever for risk managers to work in partnership with Human Resources departments as well as individual line managers, ensuring processes are well-documented and paper trail management is scrupulous.
Now is a great time to ensure your insurance policies cover you for all the risks to which you may be exposed. To discuss any aspect of your company’s insurance policy portfolio, get in touch.
Modern eco-homes: How much could it save you in the future?
The tides are changing for UK homes, and rather than relying on fossil fuels, millennials are transitioning to a more renewable way of living. With the cost of energy soaring to new heights in the midst of a climate crisis, homeowners are becoming more switched-on and opting for better insulation, high-emission boilers, and eco-friendly alternatives.
Since 85% of homes are still heated by carbon-heavy natural gas, the switch to renewable energy is heavily awaited by many. According to the Committee on Climate Change (CCC)*, the UK will not meet its climate change targets unless it eliminates most greenhouse gas emissions from homes, which currently account for around 14% of the UK's emissions.
In an effort to resolve this problem, some people are creating their very own eco-homes. This involves fitting low-carbon technology solutions to properties to make them eco-friendlier and more cost-efficient.
How much can you save with an eco-home?
Giving your home a complete green revamp is no cheap task, but when it comes to installing low-carbon energy-saving appliances around the house, you will eventually make your money back in savings on energy bills and the increased value of your home – while also doing your bit to help the planet.
According to data from TheEcoExperts*, by installing energy efficient appliances such as solar panels, roof insulation and double glazing, homeowners could save £1,863 each year – or £37,260 over 20 years.*
What’s more, using these low-carbon appliances could reduce your carbon footprint by 123.2 tonnes of CO2 over the next 20 years.*
How much can low-carbon technology increase your property’s value?
The next wave of first-time buyers will undoubtedly be seeking out greener houses that cost less to run. Eco-friendly features can increase a property’s Energy Performance Certificate (EPC) rating, and from April 2025, the government will enforce the requirement for all domestic tenancies to reach an energy efficiency rating of ‘C’ as a new minimum.
Alongside this, energy bills are set to continue rising, and the global focus on tackling climate change is likely to strengthen in the upcoming years. These two factors will dictate the impact that high EPC ratings have on house prices in the future.
Which products will save you money in an eco-home?
Solar panels
Solar panels are essential for any eco-home, as not only do they work effectively on their own, but they can also help power other low-carbon appliances such as heat pumps. According to The Energy Saving Trust, the average solar PV system costs around £4,800 and can save on average £530 annually* - that’s roughly £10,600 over 20 years.
Double glazing
Double glazing is becoming a must for most home-hunters, as its money-saving and eco-friendly benefits are ideal for keeping warm over the winter months.
The price will depend on the style and size of the window, as will the material of the frame. According to the Energy Saving Trust, swapping out single-glazed windows for A-rated double-glazed windows could save you £145 per year*.
Roof insulation
It’s widely estimated that a quarter of a home’s heat is lost through its roof; therefore, insulating this part of your property is vital if you want to save on energy bills.
Plus, roof insulation is much cheaper than many other home improvements – it typically costs around £530 for the average three-bedroom house.
Savings will depend on the type of property you live in – whether it’s a detached house, a bungalow, or a flat – but you can expect to save between £150 - £380 a year. This means you could earn your money back in savings within one or two years, and as a bonus, you could cut your carbon footprint by up to 11.6 tonnes of CO2 over 20 years.**
Summary
Eco-homes are still a growing trend, but with today’s fast-changing climate, it’s likely they’ll start to appear more frequently across the UK in the next decade.
If you’re thinking of creating your own eco-home, now is the perfect time to invest. The earlier you can start making lifelong savings and reducing your lifelong carbon footprint, the better. Even just taking green baby steps towards making your home eco-friendlier can make all the difference in the long run – you’ll slash your bills, help the planet, and keep your home cosy and warm over the winter.
To learn more, please contact us.
Energy Saving Trust*
The Eco Experts**
Should you let your car insurance automatically renew?
Letting your car insurance renew automatically may sound like an attractive option as you won’t need to put in any extra work, and you might be happy with the plan you’re on right now. However, this is one of the most expensive mistakes to make, as deciding not to seek out a better deal means your insurer can take advantage of your indifference and subsequently, hike up your premiums.
Without shopping around first, you could be missing out on endlessly cheaper deals on your car insurance, and there are countless other ways to drive that cost down even further. Here are our top tips:
Consider a telematics policy
Telematics car insurance bases your fees on real data about your driving behaviours, which can be recorded either through a black box fitted to the vehicle or a mobile phone app. As long as you’re a safe and careful driver, this is a great option for any age group, as telematics insurance can offer much lower premiums.
Limit your mileage
By limiting the number of miles you drive each year, insurers will see you as a lower risk, which will qualify you for cheaper insurance.
It’s pinnacle that you provide an accurate estimate of your mileage when getting a quote, as your policy becomes invalid if you’re dishonest.
Improve security
Consider installing security devices such as alarms, immobilisers, and locking wheel nuts.
You should always get a quote on how much your insurance would cost after these upgrades first, so you can weigh up whether the cost of these measures is worth the savings.
Increase your voluntary excess
Opt for a higher voluntary excess when you take out your policy, as it will lower the price of your insurance.
However, if you make a claim, you will have to pay the excess towards the cost of repairing or replacing your car, so make sure you are able to afford the excess just in case you do end up having to pay it.
Pay annually
A lump sum may seem daunting but paying monthly is a loan which comes with interest. This is why paying upfront is a substantially cheaper option if you have the funds to do so, and you won’t end up spending anything on borrowing.
Build up your no-claims bonus discount
Insurers reward drivers who are claim-free by discounting their premiums for cheaper insurance. So, keep driving safely and responsibly and you will see the benefits year-on-year.
Park with care
If you have a driveway or a garage, make sure you keep your car parked there overnight.
This will drastically lower your chances of your car being stolen or vandalised, and insurers may lower premiums as you’ll be seen as less of a risk.
Avoid modifications
Modifications of all kinds — whether they’re upgrades to styling, audio, or performance — could result in a large hike in the price of your insurance.
This is because features such as alloy wheels, body kits, and performance upgrades can make your car substantially more attractive to thieves, and your insurer will see your vehicle as a higher risk. Modified cars also tend to be more expensive to repair due to their expensive parts.
To find out more, please contact us.
Over half a million uninsured cars seized since 2018
Around 65,000 cars taken off drivers so far in 2022. More than 129,500 cars seized during 2020 pandemic. “Don’t take the risk” warns AA Insurance MD. More than half a million (542,370) uninsured cars have been seized since 2018 according to information collated by AA Insurance.
A Freedom of Information request to all 46 police forces across the UK discovered that so far this year 64,682 cars have been taken away from drivers for not having insurance. Despite the lockdowns and restricted travel throughout 2020, it saw the most uninsured vehicles seized with more than 129,652 cars taken off the road.
The Metropolitan Police took the most cars off the road with 62,900. West Midlands came second with 44,056 taken away and West Yorkshire completing the top three with 33,829 cars seized. More than 33,000 drivers in Scotland had their cars seized, compared to 22,700 Welsh drivers and 9,360 drivers in Northern Ireland. Kent Police did not respond to the request, while Cheshire Police advised that their systems could not easily determine how many cars had been seized for driving without insurance.
AA Insurance estimates there are approximately one million uninsured drivers on the road each year, however as the cost of living crisis deepens some drivers may be lured into driving without insurance. Gus Park, managing director for AA Insurance Services, said: “Every driver is worried about being involved in a collision, but worse still is the other party being uninsured. “With approximately a million uninsured drivers on the road each year, we believe it is right to protect our members with our Uninsured Driver Promise. This gives peace of mind to our customers should they be involved in a crash with an uninsured driver.
“Sadly, we know that when times are hard some people try to cut their costs, and one area people are tempted to chance it, is cutting out their motor insurance. However, these figures show that forces across the country are on the lookout and will take uninsured car away. “Don’t take the risk. Not only is there the chance of having your car seized, but the criminal and financial hardship is not worth the gamble.”
Should you let your home insurance renew automatically
Renewing your house insurance is essential. Without it, the costs of repairs can run into millions. It’s comforting to know that if somehow you forget to renew your policy; your house insurance will renew automatically. That’s right - you don’t have to do anything, and your home and its possessions will remain insured!
However, the catch is you could end up paying a lot more for the same level of cover by not shopping around. Whatever method you use; comparison sites, direct quotes or you’re married to an insurance broker, the truth is, while it’s not always the case, you will most likely end up paying over the odds.
Here are a few tips when renewing your home insurance:
It’s not always too late to change your mind
If your insurance automatically renews and you know it has cost you more money, remember the cooling-off period of at least 14 days. Sometimes longer, depending on terms, this will give you time before you must pay an expensive cancellation fee.
Shop around
A month before your policy expires shop around. Make good use of comparison websites, you are more than likely to find a better deal.
Haggle
If or when you find a better deal and your policy has not yet expired, ask your current insurance broker if they can match or at least improve on price. You might just be surprised at the answer! This is a proven method of driving down your insurance costs but beware you might not get the desired reduction in price.
Check the details
Always discuss and check the finer details of your policy. For example, your contents insurance policy may not always include bicycles stored in your shed, even if you have a contents insurance policy for your shed, as part of your home insurance policy. Don’t be afraid to ask lots of question of the broker to find out exactly what natural occurring events are insured. Flooding for example may not be covered.
Remember your excess
Check your voluntary excess thoroughly, different items and contents have different levels of excess. Equally, if there are items, for whatever reason, which are less likely to get stolen, damaged or do not hold much value to you, reduce the cost of your policy by paying a higher excess on these items.
Tailor your policy to suit your requirements
Almost anything can be insured so don’t be afraid to get a quote, if it exists chances are you can insure it.
Pay monthly
If you want to spread the cost of your insurance, pay monthly, but you will pay interest. A 0% credit card can give you a little more time to pay without paying what can be a substantially high interest rate.
Pay upfront
It might mean more money leaving your account on the day, but you will not pay interest on spreading the cost and if you find the right deal, you may find there is no need to finance the payments.
Consider multi-cover insurance
Bundling your house and car insurance can be cheaper than using two different brokers. However, it’s not guaranteed. It’s worth noting that if you do take this route just because you make a claim for your vehicle it does not mean an automatic hike in the price of your house insurance.
There are lots of options so set aside some time to examine them thoroughly, it could save you a lot of money.
Car insurance - tips you need to know
There are few better feelings than the freedom of driving on the open road. Sometimes, made even better when you are not quite sure where you are going! The scenery is beautiful and the road is clear, for once. There are only a few things that could spoil it. Your car is reliable and never lets you down, so it’s not going to be a breakdown.
The sound of your motor and the feel of the wheel is sublime as you twist and turn along B roads. The last thing you want to think about is whether you are fully covered or have that horrible feeling of being ripped off, so here are a few things that are good to know.
The right level of cover
Most people are familiar with the differing levels of cover defined as fully comprehensive, third-party fire and theft, and third-party. Not so well known is the fact that third-party car insurance is not necessarily cheaper than comprehensive cover.
Shop around
Today with so much consumer choice shopping around has never been easier. However, there is still room for negotiation.
Haggle!
If you are not planning on sticking with your current car insurance provider and you get a better quote elsewhere, ask them the question - Is that your best price? You might be surprised by what they could do for you!
Don’t pay monthly
Paying monthly is very convenient if you don’t have the funds to pay in a lump sum. Remember you are effectively borrowing the money at quite a high interest rate, if you pay monthly, so it will cost you more in the long run.
Get a black box fitted
A black box measures your mileage, speed, acceleration, braking and cornering as well as the times and roads you drive on. If you are a careful and cautious driver this may lead to a more competitively priced premium.
Increase your voluntary excess
As a general rule the higher the voluntary excess you pay the less your premium, a word of warning, be realistic if you do have an accident you will have to pay it so don’t make it too high!
Try and reduce your mileage
The less mileage you drive the less your premium will be. Always be as accurate as possible and if you think you are going to exceed your annual mileage inform your insurance provider immediately.
Car security
Most cars are now fitted with alarms as standard but fitting an immobilizer could reduce your premium as will off-street parking compared with street parking.
No-claims bonus
The more years you get under your belt without making a claim the cheaper your premium. If you are in a non-fault accident you still must inform your insurance provider and your premium may increase.
Protect your no-claims bonus
Some insurance companies give you the option of paying a bit extra to protect your no-claims bonus, so if you do claim your no-claims bonus will not be lost, in part or completely.
The right car
If you are just starting to drive and you want to save on car insurance buy a car that is cheaper to insure. Cars in insurance groups are cheaper the lower the number. Ranging from 1-50, if you are lucky enough and have the budget you may look at cars closer to fifty!
Need some advice on finding the right car insurance premium? Call for a quote.
Most common facts and misconceptions about life insurance
Life insurance gives you peace of mind and reassurance that if the worst should happen your loved ones and potentially the home you worked so hard for are financially secure.
Supporting your family is your top priority, life insurance prevents your family from potentially enduring extreme hardship when you are not there to provide for them.
There are many misconceptions about life insurance. The key to getting to grips with life insurance is understanding that everybody is different. Your individual requirements and circumstances will shape your policy and premium.
Life insurance is costly
Life insurance is not expensive, the cost of your policy will depend on your age, the term of the policy and your health.
You don’t need it!
Many young, single people are of the opinion that they do not need life insurance. You have no dependents so what’s the point? If the worst did happen, wouldn’t it be nice to leave something to your niece, sister or parents?
You already have it
Perhaps you get life insurance at work as a perk. However, it is important to check that the payout is sufficient to take care of your beneficiaries adequately. Perhaps you have a mortgage, and you want to be able to pay it off and have funds left over to ease financial pressure on your family if you are not there.
You will need annual check-ups
It’s not true that you need annual health check-ups. In most cases, you will not need a full medical examination before taking out a life insurance policy. You will be asked to provide information about alcohol consumption, whether you smoke or not, your height, weight or anything else in your lifestyle choices that could affect your health, for example; Do you have any dangerous hobbies?
You need Life insurance to get a mortgage
While it’s true that some mortgage providers require you to take out life insurance, generally it’s not required. If you are obliged to take out a life insurance policy as part of your mortgage deal - Is it really such a bad idea? Your family will reap the benefits, while your mortgage provider has peace of mind that your mortgage will be paid.
You will get taxed on payouts
Life insurance payouts are tax-free, so your family will not endure income and capital gains tax if your insurance provider makes a payout. However, payouts can be added to the total value of your estate and could be subject to inheritance tax.
Life insurance won't cover COVID-19
It’s essential that you check the terms and conditions of your policy. Some insurance providers may differ. Generally, it’s worth remembering, that if you or a loved one makes a claim on your life insurance policy, you are subject to the terms and conditions of your policy and should receive a payout in the event of COVID-19.
You can't get a policy with pre-existing conditions
It’s not true that you can’t take out a life insurance policy if you have pre-existing medical conditions. It will increase the cost as it increases the chances of you making a claim. Unfortunately, certain insurance providers may refuse to offer cover, although it’s worth remembering that there are specialist life insurance providers who will cover you.
In conclusion
Life insurance is important when it comes to providing for the people closest to you. Just remember the golden rules. Check your terms and conditions thoroughly and always be honest and disclose any information that could affect your premium. Otherwise, you could invalidate your policy and your loved ones will suffer the consequences.
Do you want to enjoy that comforting feeling of knowing you can always take care of your loved ones? Get a quote.
Travel insurance top tips
Travelling is one of the greatest investments of your life. Whether you are backpacking across multiple countries and enjoying the sensory overload of so many diverse and vibrant cultures. Or, if you are simply having a week in the sun to rest up and give yourself that all-important, well-earned, break on the beach.
A good travel insurance policy is well worth paying the relatively low cost to keep anxiety or worry to a minimum, and fun, relaxation and enjoyment to the maximum. You don’t want to have any concerns niggling at the back of your mind. You want to devote your entire holiday to becoming a stress-free, collage of happy memories.
Types of cover
There are many types of cover depending on your requirements. For the most part, the clue is in the title of each! Annual/multi-trip cover, single-trip cover, winter sports and backpacker travel insurance to name a few. Your premium will depend on your age and any pre-existing medical conditions. Insurance providers also categorise cover types according to your destination, for example, European or worldwide.
Couple, family and group cover
If you are travelling as part of a group, with family or as a couple, you are most likely to get a cheaper deal if you take out the relevant group policy instead of insuring individuals separately.
You should get what you pay for!
Don’t just go for the cheapest quote you find. When you look more closely at the small print you may find some nasty surprises. It’s also worth pointing out that you may have travel insurance coverage as part of your home insurance policy. Again, check the details, it may only cover certain destinations or have other limitations.
Look out for exclusions and exemptions
These can be quite common, so it’s important to find the right policy with the right insurance provider and check out any pitfalls. Exemptions can be based on age limits, alcohol consumption, driving and reckless behaviour.
Cancellations
Remember your travel insurance will cover you against cancellations. Always check your terms. It’s comforting to know you will not have to pay twice, or lose out on a trip of a lifetime, due to unexpected events which force you to cancel.
GHIC card
A Global Health Insurance Card is no substitute for travel insurance, although it’s free and may entitle you to reduced or free medical care in the EU. It’s important to know that it will not cover you for medical treatment.
Shop around
Travel insurance providers vary in what they can offer you and what they cover. It’s wise to spend a bit of time shopping around to get what you need at the right price.
Finally
Don’t forget your passport, with the right travel insurance cover, all you have to do is have a great time!
Going somewhere nice and need the right level of travel insurance for you and your family? Browse our website.
Cyber insurance for beginners
Cyber risks are one of the biggest concerns for all businesses today. Cyber security does not just deal with internet-based threats such as network security and Internet of Things security (IoT), but also critical infrastructure, cloud security and application security.
Simply put, cyber security aims to protect systems, networks, programs, devices and data from cyber-attacks and aims to stop sensitive information from getting into the wrong hands.
Cyber insurance is a specialist form of insurance which aims to cover cyber-based data breaches. It’s been around since the mid-nineties in a basic form. Compared with other types of insurance it’s relatively new. Don’t be fooled by its recent arrival to the party! Businesses without it run the risk of being destroyed. Cyber-attacks are becoming more commonplace and operating in today’s business world without insurance is a huge risk.
There are three levels of cyber-insurance protection
Third-party
This covers the cost of compensating the third party who suffers data breaches or cyber-attacks due to the insured being at fault. While it’s not liability insurance, it’s similar to traditional liability insurance for businesses, in the sense that your client is protected if your business is at fault.
First party
Essentially this type of policy covers businesses directly and all insured parties for costs caused by cyber-attacks. It’s a bit like fully comprehensive car insurance compared with third party, as your business is covered not just the third party.
Silent
Ironically this type of insurance is not cyber insurance, rather it covers losses which come about as a result of cyber-attacks that are covered by traditional buildings or liability insurance. For example, if your business’s computer system was fitted with malware, which causes a blackout and one of your employees slips and is injured. Then your employee liability insurance, if it did not exclude incidents stemming from cyber-attacks, would pay compensation.
Cyber insurance should cover the following
Data breaches
This covers your business for any expenses arising due to data breaches such as compensating victims for administrative costs associated with communicating with those affected.
Regulatory civil action
This covers regulatory bodies issuing fines due to breaches concerning GDPR – General Data Protection Act.
Extortion
Cyber extortion is sadly becoming more prevalent, especially with unaware employees. The culprits often use phishing attacks – clicking on a link that contains malware, with the result of data being stolen from the insured, with the illegal party then attempting to sell this data back to the policyholder.
Virus liability
If your clients get a virus from your systems and need to be compensated, then your business is covered. This can happen despite anti-virus software and needless to say the damage caused by viruses can be colossal and lead to the loss of millions in revenue and huge legal expenses.
Loss of income
If your computer system suffers a meltdown or your website goes haywire and losses are incurred as long as you can provide proof of the loss of income, then your business will be compensated.
Loss of data
This covers the cost of replacing any lost data due to data breaches, sabotage or viruses as well as many other scenarios. Always check what you are covered for with your insurance provider.
Errors and omissions
Traditionally a form of professional liability insurance protects companies and their employees, primarily in the event of your company misinforming a client. As an example, if you provided a client with incorrect financial advice and they seek compensation then you are covered. In the context of cyber security if this misinformation is due to your software, then your business is covered.
It’s a no brainer
The risks of operating without cyber insurance are almost incalculable. Technology is ubiquitous no matter which industry your business operates. Are you prepared to risk it all?
Need a competitive quote and want to talk to someone who can get you the right cyber insurance policy? Contact us.
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