Review: Cyber for SMEs
NIG Cyber Cover. This product has been reviewed by brokers and rated from one to five stars, based on the policy’s key benefits. * = Poor ** = Average *** = Good **** = Very good ***** = Excellent
Product: Cyber Cover
Underwriter: NIG (100% reinsured by HSB)
Commission paid: 17.50% (or net)
Coverage: NIG Cyber cover is tailored to the needs of SMEs and our limits reflect this.
Standard covers – Maximum limits, up to, cyber crime £100,000 (minimum limit £25,000); cyber liability £1m (minimum limit £25,000); data-breach expense £1m, (minimum limit £25,000)
Optional covers – Maximum limits, up to, hardware £5m; data corruption and extra cost £1m (minimum limit £25,000); cyber event - loss of business income £1m, (minimum limit £25,000)
Policy level – Maximum limits, up to, ‘cyber attack limit’ £250,000
Minimum premium: £92 + IPT
Excess: For claims under more than one section, only one excess will apply to the claim, and it will be whichever of the relevant excesses is higher. The excess will apply separately from any time excess.
Standard Excesses
Cyber crime £100; cyber liability £1,000; data breach expense £1,000; hardware £50 for smartphones £100 all other
Data corruption and extra cost (12 months indemnity period): for smartphones £50; for fire, lightning, explosion and aircraft £0; for all other occurrences £100; business interruption – cyber (three month indemnity period) six hour time excess
Contact: Janet Light – head office underwriter, 01651 832 440, janet.light@directlinegroup.co.uk
Key benefits:
▶ Targeted at SME market – manufacturing, wholesale, retail, professional services with a low limit requirement (£50,000/£100,000 before referral and additional info required).
▶ Competitive premiums (Cyber minimum premium £92 + IPT. Cyber & Computer minimum premium £160 + IPT).
▶ Low excesses (£100 hardware/crime & six hour excess on cyber loss of bus income) - options to increase.
▶ Easy to quote - minimal info required for low limits (rated on trade, turnover and if new venture or not).
▶ Statement of fact for risks with limits under £500,000.
▶ Crystal Mark ‘Plain English’ policy wording.
▶ Variable limits/excesses/indemnity limits.
Verdict
Richard Hodson of UKGlobal comments: “I believe NIG’s cyber product for SME customers is only available to clients with a commercial combined package.
“The most positive aspect of NIG’s offering is that it has avoided the trap of many other additional cover policies by putting cyber crime front and centre and not data breach as most incidents suffered by UK businesses are mostly fraudulent director emails, ransomware (eg. cryptolocker), phone hacking (aka phreaking) and fake supplier invoicing.
“The terrorism carve-back means that the usual social, political and ideological attacks associated with cyber terrorism/hacktivism would be covered.
“Service providers are also covered, with most businesses outsourcing at least some of their IT then this is very important.
“Key coverage elements provided include loss of own funds, telephone hacking (phreaking), technical assistance for ransom/extortion claims, cover for employee data, and inadvertent transmission of virus.
“However negative points include no cover for the actual ransom or extortion amounts should the technical expertise fail; cover for loss of funds is only provided if the insureds own systems have been used or the requests to pay bogus invoices have come electronically. No cover is provided should the fraud be committed via the use of telephone to gain information about login details.
“Whilst most policies will be quoted on a statement of fact basis there are some stringent conditions that should be drawn to the insureds attention.
“There is an aggregate cap across all policyholders suffering from the same cyber event known as a cyber attack limit set at £250,000. Whilst the limit is high and higher than the limit of cyber crime cover you can purchase under this policy this materially disadvantages the policy against more open market cyber covers.
“The policy is written in clear language limiting the techno speak to a minimum, crime is covered as the first module though I would like to see business interruption as a core module. Just be careful to alert customers to all of the conditions in the wording if quoting on a SoF basis.”
Overall rating ****
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