CFC Cyber
Is Cyber Insurance Right for My Business?

Cyber insurance is becoming increasingly important for businesses of all sizes, yet many still struggle to understand its value and applicability. This document outlines six key reasons why purchasing a standalone cyber policy can be beneficial for businesses:

1. Prevention and Response Services

Cyber insurance policies often include valuable risk management tools and incident response services. These can help prevent attacks through measures like phishing simulations and dark web monitoring and provide expert support in the event of a cyber incident.

2. Small-to-Medium Businesses are Prime Targets

While major breaches at large companies make headlines, smaller businesses are frequent targets for cybercriminals. Over 75% of small businesses reported a cyber attack in the past year, as they often lack robust IT security resources.

3. Human Error is a Major Risk Factor

Approximately 75% of cyber claims involve preventable human errors, such as clicking on malicious links or accidentally sharing sensitive data. Cyber insurance provides training to reduce these risks and coverage when mistakes occur.

4. Limited Coverage in Traditional Policies

Standard insurance policies often provide inadequate cyber coverage. Standalone cyber policies address gaps left by traditional insurance and offer specialized expertise in handling cyber incidents.

5. Comprehensive Coverage Beyond Data Breaches

Cyber insurance covers a wide range of incidents beyond just data breaches. Common claims include funds transfer fraud and ransomware attacks, which can severely impact businesses without compromising sensitive data.

6. Rising Frequency of Cyber Claims

The number of cyber claims continues to increase year over year. CFC, a cyber insurance provider, handled over 2,500 cyber claims in the past 12 months alone, with a 99% claims acceptance rate over the past two years.

In conclusion, cyber insurance offers businesses comprehensive protection against various digital risks, access to preventative tools and expert support, and coverage for incidents that traditional insurance policies may not address. As cyber threats continue to evolve and increase in frequency, cyber insurance is becoming an essential consideration for businesses of all sizes to mitigate their digital risk exposure.

CFC Cyber
Market Leading Cyber Insurance

CFC is a leading cyber insurance provider, offering comprehensive protection for businesses against cyber risks. Their products are designed to prevent cyber attacks and minimize the impact if one occurs.

Proactive Cyber Attack Prevention:

CFC employs vulnerability scanning, threat monitoring, and real-time cyber attack prevention throughout the policy lifecycle. It uses insights from various sources to identify potential threats and proactively alert vulnerable customers.

24/7 Incident Response:

CFC boasts the market’s largest in-house incident response team, available 24/7 with a follow-the-sun approach. They handle over 2,500 cyber events annually, with a technical response time of less than 15 minutes.

Award-Winning Cyber Cover:

Their comprehensive cyber cover includes first-party costs, third-party liability, and in-house cyber security team access. The coverage is 100% backed by Lloyd’s and has received excellent ratings from A.M. Best, Fitch Ratings, and Standard & Poor’s.

Notable Coverage Highlights

• Broad non-physical perils business interruption cover
• Tech supply chain failure coverage
• Nil deductible on initial incident response costs
• Full retroactive cover with a discovery-based trigger
• Emergency costs provision
• No warranties or conditions requiring specific cyber security measures

Response Mobile App

• Critical threat alerts in real-time
• 24/7 access to cyber security experts
• Incident reporting functionality
• Free cyber security tools (dark web monitoring, phishing simulations, deep scanning)

Claims Handling

CFC’s in-house claims team has over 20 years of experience and resolves over 2,000 cyber claims annually. They handle various types of incidents, including ransomware attacks, data breaches, and business interruption.

Company Overview

CFC is a specialist insurance provider headquartered in London with offices in several major cities worldwide. It has over 800 employees and is trusted by over 130,000 businesses across 90 countries. The company uses cutting-edge technology and data science to deliver efficient underwriting and protection against critical business risks.

In summary, CFC offers a comprehensive cyber insurance solution that combines proactive prevention, rapid incident response, and robust coverage, making it a trusted choice for businesses seeking protection against cyber risks.

CFC Cyber
Nil Deductible and a Separate Limit for Incident Response

CFC Cyber outlines their innovative approach to cyber insurance, emphasizing two main features: a nil deductible for initial incident response and a separate limit for incident response costs. These features are designed to encourage prompt reporting of cyber incidents and provide comprehensive coverage without financial hesitation from policyholders.

Nil Deductible for Incident Response

CFC offers initial cyber incident response services at no deductible cost, meaning policyholders do not have to make any upfront payments when they suspect a cyber incident. This approach aims to eliminate the fear of incurring costs or triggering claims that might increase future premiums. By allowing immediate notification and engagement with their incident response team, CFC helps businesses quickly address potential threats before they escalate, minimizing damage and associated costs.

Separate Limit for Incident Response Costs

Traditional cyber insurance policies typically have a single aggregate limit, which can be depleted quickly by the high costs associated with responding to cyber attacks. CFC addresses this issue by providing two distinct coverage limits: one dedicated to incident response services and another for business resumption, interruption, and cybercrime costs. This dual-limit structure ensures that businesses have adequate coverage for immediate response efforts and longer-term recovery needs, effectively doubling the available resources without additional cost.

Real-World Application

The document provides an example of how these features work in practice. In the case of a retailer facing a ransomware attack, CFC’s policy allowed for immediate forensic investigation and system recovery without initial payment from the insured. The separate incident response limit covered significant costs related to mitigating the attack, while the business resumption limit addressed losses from business interruption. This comprehensive coverage ensured that all expenses were managed within the policy’s limits, providing substantial financial protection.

Market-Leading Coverage

CFC positions its cyber insurance as market-leading due to these features, offering peace of mind to policyholders by ensuring they can rely on robust support during cyber incidents. The document also hints at additional benefits like unlimited reinstatements, further enhancing the appeal of their coverage.

Overall, CFC’s approach aims to transform cyber insurance from merely a financial safety net into an active protective service that supports businesses in both preventing and recovering from cyber attacks efficiently.

CFC Cyber
The Power of Unlimited Reinstatements

CFC Cyber outlines the benefits of offering unlimited reinstatements in cyber insurance policies. As cyber attacks become more frequent and impactful, businesses face the risk of experiencing multiple incidents within a single policy period. Traditional cyber insurance policies often have a single aggregate limit, which can be quickly exhausted by a significant attack, leaving businesses vulnerable to subsequent incidents.

Unlimited Reinstatements Explained

CFC introduces the concept of unlimited reinstatements, which provides a new policy limit for each unrelated cyber claim. This approach is inspired by traditional insurance lines where policy limits are reinstated after each claim. For instance, if a business suffers a ransomware attack that uses up the full $1 million policy limit and later experiences an unrelated fund transfer fraud, the policyholder receives a fresh $1 million limit to cover the new incident. This ensures continuous protection without additional premium payments for each new limit.

Business Benefits

The primary advantage of CFC’s unlimited reinstatements is that businesses receive multiple coverage limits for the price of one premium payment. This offers better value for money and ensures long-term protection throughout the policy’s lifespan. Businesses can operate with peace of mind, knowing their insurance will fully respond to each separate incident.

Real-World Application

The document provides a case study of a manufacturing firm that benefited from CFC’s unlimited reinstatements. Within two months, the firm experienced a ransomware attack followed by funds transfer fraud. The initial ransomware attack consumed the entire $1 million policy limit due to costs associated with downtime, forensic investigation, and legal counsel. However, because CFC’s policy included unlimited reinstatements, the firm was fully reimbursed for the subsequent fraud incident.

Market-Leading Cyber Cover

CFC emphasizes that its cyber policies do not impose warranties or conditions specifying security controls at the time of an incident. This allows them to focus on helping businesses recover quickly and effectively from cyber attacks. The document highlights that unlimited reinstatements are essential for businesses facing constant cyber threats, providing robust and flexible coverage in an unpredictable environment.