Cyber-attacks estimated to cost SMEs £800m per year
Insurtech company – CPP Group UK has revealed a new cyber insurance product on the Acturis insurance administration and trading platform.
It is available and designed to cater for the needs of smaller SME businesses who are at risk of cyber-attacks, but which rarely have the appropriate cover in place.
The product will be offered by SPP Secure (CPP’s Managing General Agent business) and is underwritten at Lloyd’s.
Cyber-attacks have been estimated to cost SMEs in excess of £800m per year.
It is the insurtech’s first product to be launched since its recent entry into the broker market and follows its recent acquisition of the broker –Business and Domestic Insurance Services.
Michael Whitfield, managing director of CPP Group UK, said: ““Making it available through Acturis allows us to reach the extensive list of specialist commercial insurance brokers using the platform and we look forward to partnering with them to protect at-risk SMEs.
“Our cyber insurance policy will make it easy for brokers to offer their smaller SME clients a simple policy, which includes important cover at a very affordable price.
“More than half of malware attack victims are small businesses, and the consequences and costs which arise from these attacks are almost always very damaging, sometimes to a fatal extent.
“Attacks by cyber criminals are becoming more sophisticated as every day passes and all businesses need help if they are to be able to counter the threats posed to them. Despite this, many SMEs treat cyber security as low priority.”
Smaller SMEs have lower capital reserves and minimal access to professional IT resources, smaller SME organisations and are therefore particularly vulnerable to cyber-attacks and business interruption, loss of revenue, reputational damage and heavy regulatory fines.
Jennifer Wainwright, specialty lines product manager at Acturis, added: “It’s great to work with CPP Group UK to extend the Cyber products available on our new, reduced Cyber NOW question set for stand-alone business. We are also thrilled that CPP has chosen Acturis to be a part of this launch and its testament to Acturis’ reputation in the insurance market and Cyber in particular that CPP has chosen us as the platform to do this.”
What will the policy include?
It offers provide affordable cover to organisations with revenues of up to £20m. It has a reduced question set and uses simple, jargon free language in policy documentation to increase accessibility for SMEs and brokers.
It includes a 24/7 helpline for SME customers, free anti-virus software and cloud-hosted backup storage.
Access to a specialist IT forensic company is also provided in the event of an incident, to investigate what data specifically is compromised. Pubic relations support will also be available to mitigate any potential reputational damage.
SMEs with be insured against liabilities arising from a cyber attack and any related breach of data privacy legislation. It offers selectable indemnity limits of £50k to £2m, with lower than market-norm excesses and competitive rates for smaller businesses.
It is available as a standalone product or add-on.
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