Cyber Insurance for IT Firms

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Specialist protection for technology companies, software developers, MSPs, and IT consultants

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We compare quotes from leading insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

COMPREHENSIVE CYBER PROTECTION FOR IT BUSINESSES

Why IT Firms Need Specialist Cyber Insurance

As an IT firm, you face unique cyber risks that standard policies don't adequately cover. Your business handles sensitive client data, manages critical infrastructure, and provides technology services that clients depend on. A single security incident can trigger professional liability claims, regulatory investigations, and devastating reputational damage. Insure24's specialist cyber insurance for IT firms provides comprehensive protection tailored to your industry's specific exposures.

Comprehensive Coverage for IT Firms

Our specialist cyber insurance policies address the full spectrum of risks facing technology companies.

  • First-Party Coverage - Direct losses to your business including data recovery, system restoration, business interruption, and forensic investigation costs.
  • Third-Party Liability - Protection against claims from clients whose data or systems were compromised through your services or infrastructure.
  • Professional Indemnity Integration - Coverage for technology errors and omissions that lead to cyber incidents affecting clients.
  • Regulatory Defence - Legal representation and defence costs for ICO investigations, GDPR enforcement actions, and regulatory penalties.
  • Crisis Management - Public relations support, client notification services, credit monitoring, and reputation management following a breach.
  • Cyber Extortion - Ransomware negotiation, payment coverage, and recovery support for extortion attacks targeting your firm or clients.
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Unique Cyber Risks Facing IT Firms

Technology companies face heightened cyber exposure due to the nature of their operations and the trust clients place in them.

Client Data Exposure

  • Access to sensitive client systems and databases
  • Storage of client credentials and authentication data
  • Multi-client data commingling risks
  • Supply chain attack vectors through your infrastructure
  • Regulatory liability for client data breaches

Professional Service Risks

  • Security vulnerabilities in developed software
  • Configuration errors in managed services
  • Inadequate security controls in delivered solutions
  • Failure to detect or prevent client breaches
  • Contractual liability for security failures

High-Value Target Status

  • Attractive target for sophisticated threat actors
  • Access to multiple client environments
  • Intellectual property and source code theft
  • Supply chain compromise opportunities
  • Competitive intelligence targeting

Operational Dependencies

  • Critical reliance on technology infrastructure
  • Cloud service provider dependencies
  • Remote workforce security challenges
  • Third-party software and API vulnerabilities
  • Continuous availability requirements
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Coverage by IT Business Type

We provide tailored cyber insurance for every type of technology business.

Managed Service Providers (MSPs)

  • Multi-client breach liability coverage
  • Remote monitoring and management risks
  • Backup and disaster recovery failures
  • Privileged access abuse or compromise
  • Service level agreement breach costs
  • Supply chain attack liability

Software Development Companies

  • Software vulnerability liability
  • Source code theft and IP protection
  • Development environment breaches
  • Third-party library and dependency risks
  • Customer deployment security failures
  • SaaS platform breach coverage

IT Consultants & System Integrators

  • Professional advice liability
  • Implementation and configuration errors
  • Security assessment negligence
  • Client network access risks
  • Project data exposure
  • Subcontractor security failures

Cloud Service & Hosting Providers

  • Infrastructure breach liability
  • Multi-tenant isolation failures
  • Service availability and uptime losses
  • Data centre physical security
  • Customer data loss or corruption
  • DDoS attack mitigation costs

Cyber Security Firms

  • Professional liability for security failures
  • Penetration testing errors and omissions
  • Security tool and service failures
  • Incident response negligence claims
  • Threat intelligence inaccuracies
  • Compliance assessment errors

Tech Startups & Scale-ups

  • Rapid growth security challenges
  • Limited security resource protection
  • Investor and acquisition due diligence
  • Early-stage compliance support
  • Flexible coverage scaling
  • Affordable startup-friendly premiums
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Real-World IT Firm Cyber Incidents

Understanding how cyber incidents impact IT businesses demonstrates why specialist coverage is essential.

MSP Ransomware Attack

Scenario: A managed service provider was compromised through a phishing attack, allowing ransomware to spread to 47 client environments through their remote management tools.

Consequences: Client systems encrypted, service contracts breached, regulatory investigations, professional liability claims exceeding £2 million, and permanent loss of 60 percent of client base.

Insurance Response: Cyber insurance covered forensic investigation, client notification, ransom negotiation, system recovery, legal defence, and professional liability settlements, protecting the MSP from bankruptcy.

Software Vulnerability Exploitation

Scenario: A software development company's product contained a critical security vulnerability that was exploited, leading to breaches at multiple customer sites.

Consequences: Customer data breaches, regulatory fines, contractual liability claims, emergency patching costs, and reputational damage threatening future sales.

Insurance Response: Cyber insurance covered customer breach response costs, regulatory defence, professional liability claims, crisis communications, and product recall expenses totalling £850,000.

Cloud Provider Data Breach

Scenario: A cloud hosting provider experienced a data breach due to misconfigured access controls, exposing customer databases containing sensitive personal information.

Consequences: GDPR violations, ICO investigation, customer notification requirements, contractual penalties, and class-action litigation from affected individuals.

Insurance Response: Coverage provided for regulatory defence, notification costs, credit monitoring services, legal representation, and settlement of customer claims totalling £1.3 million.

IT Consultant Configuration Error

Scenario: An IT consultant misconfigured a client's firewall during a network upgrade, leaving systems exposed for three months before discovery.

Consequences: Client data breach, professional negligence claim, regulatory penalties for the client, and contractual liability for security failures.

Insurance Response: Professional indemnity and cyber coverage combined to cover the client's breach costs, regulatory fines, business interruption, and negligence settlement of £420,000.

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The Financial Impact on IT Firms

Cyber incidents can be financially catastrophic for technology companies due to their unique liability exposures.

Direct Incident Costs

  • Forensic investigation: £15,000 - £100,000
  • System recovery and restoration: £25,000 - £250,000
  • Client notification and communication: £10,000 - £75,000
  • Credit monitoring services: £5,000 - £50,000
  • Ransom payments: £20,000 - £500,000
  • Emergency security remediation: £30,000 - £200,000

Third-Party Liability Costs

  • Client breach response costs: £50,000 - £500,000 per client
  • Professional liability settlements: £100,000 - £5,000,000
  • Contractual penalty payments: £25,000 - £1,000,000
  • Class action litigation defence: £200,000 - £2,000,000
  • Regulatory fines (GDPR): Up to 4 percent of global revenue
  • Legal defence costs: £50,000 - £500,000

Business Interruption Losses

  • Service delivery disruption: £5,000 - £50,000 per day
  • Client contract terminations
  • New business pipeline disruption
  • Staff productivity losses
  • Emergency staffing and overtime costs
  • Extended recovery periods

Long-Term Consequences

  • Reputational damage and client loss: 30-60 percent revenue decline
  • Increased insurance premiums
  • Competitive disadvantage in procurement
  • Difficulty obtaining new clients
  • Reduced company valuation
  • Potential business failure

Total Cost Example

A mid-sized MSP experiencing a ransomware attack affecting 30 clients faced total costs exceeding £3.2 million, including direct response costs of £450,000, client liability claims of £1.8 million, regulatory fines of £250,000, and business interruption losses of £700,000. Without cyber insurance, the company would have been forced into administration.

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When our MSP was hit by ransomware that spread to client systems, Insure24's cyber insurance covered millions in liability claims and kept us in business. Their understanding of IT firm risks was invaluable.

James T., Managed Service Provider Director

Why IT Firms Choose Insure24

Industry Expertise

  • Specialist understanding of IT business models and risks
  • Experience with MSP, software, and consulting exposures
  • Technical knowledge of security threats and controls
  • Relationships with IT-focused insurers

Comprehensive Coverage

  • Combined cyber and professional indemnity policies
  • Multi-client breach coverage
  • Supply chain and vendor risk protection
  • Flexible limits up to £10 million

Rapid Response

  • 24/7 incident response hotline
  • Pre-approved forensic and legal experts
  • Immediate breach response coordination
  • Fast claims processing and payment

Risk Management Support

  • Security posture assessments
  • Client contract review and guidance
  • Compliance framework support
  • Employee security training resources
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Security Best Practices for IT Firms

Implementing robust security controls not only protects your business but can also reduce insurance premiums.

Technical Controls

  • Zero-trust architecture for client access
  • Multi-factor authentication on all systems
  • Endpoint detection and response (EDR)
  • Network segmentation and microsegmentation
  • Privileged access management (PAM)
  • Automated patch management
  • Encrypted backups with offline copies
  • Security information and event management (SIEM)

Operational Practices

  • Regular security awareness training
  • Incident response plan testing
  • Third-party security assessments
  • Vendor security due diligence
  • Client security requirements documentation
  • Change management procedures
  • Security-focused code review
  • Penetration testing and vulnerability scanning

Compliance & Governance

  • ISO 27001 certification
  • SOC 2 Type II attestation
  • Cyber Essentials Plus accreditation
  • GDPR compliance program
  • Regular compliance audits
  • Security policy documentation
  • Data classification and handling procedures
  • Privacy impact assessments

Client Protection Measures

  • Client data segregation
  • Secure credential management
  • Client-specific access controls
  • Service level agreement security terms
  • Breach notification procedures
  • Client security reporting
  • Contractual liability limitations
  • Insurance requirements in contracts
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Coverage Levels for IT Firms

We offer flexible coverage options scaled to your business size, client base, and risk exposure.

Startup & Small IT Firms

Ideal for: IT consultants, small development teams, startups with fewer than 10 employees

  • First-party coverage: Up to £250,000
  • Third-party liability: Up to £500,000
  • Business interruption: Up to £100,000
  • Ransomware coverage: Up to £100,000
  • Professional indemnity: Up to £500,000
  • Regulatory defence: Up to £100,000

Growing IT Businesses

Ideal for: Established MSPs, software companies, IT consultancies with 10-50 employees

  • First-party coverage: Up to £500,000
  • Third-party liability: Up to £2,000,000
  • Business interruption: Up to £500,000
  • Ransomware coverage: Up to £500,000
  • Professional indemnity: Up to £2,000,000
  • Regulatory defence: Up to £500,000

Established IT Companies

Ideal for: Large MSPs, software vendors, system integrators with 50-200 employees

  • First-party coverage: Up to £2,000,000
  • Third-party liability: Up to £5,000,000
  • Business interruption: Up to £2,000,000
  • Ransomware coverage: Up to £1,000,000
  • Professional indemnity: Up to £5,000,000
  • Regulatory defence: Up to £1,000,000

Enterprise IT Organizations

Ideal for: Major technology companies, cloud providers, large-scale service providers

  • Fully customizable coverage limits up to £10,000,000+
  • Dedicated cyber risk consultant
  • Continuous threat intelligence and monitoring
  • Crisis management team on retainer
  • Multi-jurisdictional coverage
  • Bespoke policy terms and conditions
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Regulatory Compliance for IT Firms

Our cyber insurance helps IT firms meet increasingly stringent regulatory requirements.

Key Regulations

  • GDPR data protection obligations
  • NIS Regulations for digital service providers
  • ISO 27001 information security standards
  • SOC 2 Type II compliance
  • Cyber Essentials and Cyber Essentials Plus
  • Industry-specific frameworks (PCI DSS, HIPAA equivalents)

Insurance Support

  • Regulatory investigation defence costs
  • ICO enforcement action representation
  • GDPR fine coverage (where insurable)
  • Compliance breach notification support
  • Regulatory audit assistance
  • Policy alignment with compliance requirements
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How to Get Cyber Insurance for Your IT Firm

  • 1. Initial Consultation - Discuss your IT business model, services, client base, and specific risk exposures with our specialists.
  • 2. Risk Assessment - Complete a detailed security questionnaire covering your technical controls, policies, and compliance status.
  • 3. Quote Comparison - We compare quotes from multiple insurers specializing in IT firm coverage to find the best terms.
  • 4. Policy Customization - Tailor coverage limits, deductibles, and optional protections to match your risk profile and budget.
  • 5. Purchase & Activation - Complete your purchase and receive immediate coverage confirmation with full policy documentation.
  • 6. Ongoing Support - Access risk management resources, incident response planning, and annual policy reviews.
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SPECIALIST INSURANCE
TAILORED FOR IT FIRMS 

COMPREHENSIVE PROTECTION

  • First-party breach response and recovery costs
  • Third-party client liability and claims
  • Professional indemnity for technology errors
  • Business interruption and lost revenue
  • Regulatory defence and penalty coverage
  • Crisis management and reputation protection
  • Ransomware negotiation and payment
  • Supply chain and vendor breach liability
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Understanding Your Policy

Key terms and conditions specific to IT firm cyber insurance policies.

What's Covered

  • Cyber attacks and data breaches affecting your firm
  • Client breaches resulting from your services
  • Professional negligence leading to cyber incidents
  • Ransomware and extortion attacks
  • Business email compromise and social engineering
  • System failures and technology errors
  • Regulatory investigations and penalties
  • Crisis management and reputation costs

Common Exclusions

  • Known vulnerabilities not remediated
  • Intentional acts or fraud by owners
  • Failure to maintain minimum security standards
  • Pre-existing incidents or breaches
  • War, terrorism, and nation-state attacks (sometimes)
  • Bodily injury or property damage
  • Intellectual property disputes
  • Contractual penalties (in some policies)
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FREQUENTLY ASKED QUESTIONS

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Why do IT firms need specialist cyber insurance?

IT firms face unique cyber risks including liability for client data breaches, professional negligence claims for security failures, and heightened targeting by sophisticated threat actors. Standard cyber policies often exclude or inadequately cover these IT-specific exposures. Specialist IT firm cyber insurance provides comprehensive first-party and third-party coverage tailored to technology business models, including MSPs, software developers, and IT consultants.

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Does cyber insurance cover liability for client breaches?

Yes, specialist IT firm cyber insurance includes third-party liability coverage for breaches affecting your clients. This covers your legal liability for client data breaches, breach response costs, regulatory fines, business interruption losses, and damages resulting from security failures in your services, systems, or infrastructure. Coverage limits typically range from £500,000 to £10 million depending on your client base and risk exposure.

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How does cyber insurance work with professional indemnity insurance?

Cyber insurance and professional indemnity insurance work together to provide comprehensive protection for IT firms. Professional indemnity covers errors and omissions in your professional services, while cyber insurance covers data breaches and cyber incidents. Many IT firm policies combine both coverages or include professional liability extensions specifically for technology errors leading to cyber incidents. We recommend both policies for complete protection.

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What security measures do insurers require for IT firms?

Insurers typically require IT firms to maintain higher security standards than other businesses, including multi-factor authentication, endpoint detection and response, privileged access management, network segmentation, encrypted backups, security awareness training, incident response plans, and regular vulnerability assessments. Many insurers require Cyber Essentials Plus certification or equivalent. We can advise on meeting these requirements to obtain coverage and reduce premiums.

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How much does cyber insurance cost for IT firms?

Premiums for IT firm cyber insurance vary significantly based on your business type, revenue, client base, services provided, security controls, compliance certifications, and desired coverage limits. Small IT consultancies might pay £2,000-£5,000 annually, while large MSPs or software companies could pay £15,000-£50,000 or more. We provide customized quotes based on your specific risk profile and can help identify ways to reduce premiums through improved security practices.

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Does cyber insurance cover ransomware affecting client systems?

Yes, comprehensive IT firm cyber insurance covers ransomware attacks that spread to client systems through your infrastructure or services. This includes ransom negotiation and payment, forensic investigation, client system recovery, business interruption for both you and your clients, liability claims, and regulatory defence. This coverage is particularly important for MSPs and cloud service providers who have privileged access to multiple client environments.

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Are software vulnerabilities covered by cyber insurance?

Cyber insurance can cover losses resulting from software vulnerabilities in your products, including customer breach response costs, liability claims, regulatory penalties, and emergency patching expenses. However, coverage depends on whether the vulnerability resulted from negligence or was an unintentional error. Known vulnerabilities that were not remediated within reasonable timeframes are typically excluded. Professional indemnity coverage for technology errors often works alongside cyber coverage for comprehensive protection.

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What happens if multiple clients are breached in one incident?

Multi-client breach scenarios are common for MSPs and cloud providers. Specialist IT firm cyber insurance treats related breaches as a single incident subject to one deductible, with aggregate coverage limits applying across all affected clients. This is crucial protection, as a single ransomware attack spreading to dozens of clients could otherwise exhaust coverage quickly. We ensure your policy includes appropriate aggregate limits for multi-client scenarios based on your client base size.

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Does cyber insurance cover supply chain attacks?

Yes, comprehensive IT firm cyber insurance covers supply chain attacks where your systems or software are compromised and used to attack clients or downstream customers. This includes coverage for your own losses and third-party liability for client breaches. Given the increasing prevalence of supply chain attacks targeting IT firms, this coverage is essential. We ensure policies include specific supply chain attack provisions with adequate limits.

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Can I get coverage if I've had a previous breach?

Yes, previous breaches don't automatically disqualify IT firms from obtaining cyber insurance. Insurers will assess what remediation actions you've taken, security improvements implemented, and lessons learned. You may face higher premiums or specific exclusions related to the previous incident, but coverage is generally available. We work with insurers experienced in IT firm risks who understand that breaches can happen despite strong security practices.

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Does cyber insurance cover cloud service outages?

Coverage for cloud service outages depends on the cause. Outages resulting from cyber attacks, security failures, or data breaches are typically covered. Outages from hardware failures, power issues, or non-cyber technical problems may not be covered under cyber insurance but might be covered under technology errors and omissions insurance. For cloud service providers, we recommend combined cyber and technology E&O coverage for comprehensive protection against all outage scenarios.

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Are GDPR fines covered for IT firms?

Many cyber insurance policies include coverage for GDPR fines and penalties, though coverage varies by insurer and jurisdiction. Some policies cover fines up to specific limits, while others exclude fines deemed uninsurable under local law. Regulatory defence costs, investigation expenses, and compliance support are typically covered. As data processors, IT firms face particular GDPR exposure, so we ensure your policy includes the broadest available regulatory penalty coverage.

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What coverage limits should IT firms carry?

Coverage limits should reflect your potential exposure from multi-client breaches, contractual obligations, and regulatory penalties. Small IT consultancies might carry £500,000-£1 million, growing MSPs £2-5 million, and large technology companies £5-10 million or more. Consider your largest client's potential breach costs multiplied by the number of clients that could be affected in a single incident. We help assess your specific exposure and recommend appropriate limits.

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Does cyber insurance cover insider threats?

Yes, cyber insurance typically covers losses from malicious insider actions such as data theft, sabotage, or unauthorized access by employees or contractors. This is particularly important for IT firms where employees have privileged access to client systems. Coverage includes your own losses and third-party liability for client breaches caused by insider threats. Intentional acts by business owners or executives are usually excluded.

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How quickly does cyber insurance respond to IT firm incidents?

Specialist IT firm cyber insurance provides immediate incident response, typically within hours of notification. Insurers maintain 24/7 hotlines and panels of pre-approved forensic investigators, legal counsel, and crisis management experts who understand IT business operations. For multi-client incidents, insurers can rapidly scale response resources. We ensure your policy includes immediate response provisions and connect you with incident response teams during the claims process.

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Are penetration testing errors covered?

Penetration testing errors that cause client system damage, data loss, or operational disruption can be covered under professional indemnity insurance with technology errors extensions. Cyber insurance may also respond if testing errors lead to data breaches or security failures. For cyber security firms providing penetration testing services, we recommend combined cyber and professional indemnity coverage with specific provisions for security testing activities.

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Does cyber insurance cover business email compromise targeting IT firms?

Yes, cyber insurance covers business email compromise and social engineering attacks targeting your IT firm, including fraudulent fund transfers, credential theft, and client impersonation scams. Given IT firms' access to client systems and financial information, BEC attacks can be particularly damaging. Coverage includes direct financial losses, investigation costs, and client notification if credentials were compromised. Some policies have sub-limits for social engineering, so we ensure adequate coverage.

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Can startups and small IT firms afford cyber insurance?

Yes, cyber insurance is available and affordable for IT startups and small firms. Entry-level policies with £500,000-£1 million coverage typically cost £2,000-£5,000 annually, which is modest compared to the potential costs of a single breach or client liability claim. Many insurers offer startup-friendly terms with flexible payment options. Given the existential risk a cyber incident poses to small IT firms, insurance is a critical investment in business continuity and client confidence.

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Does cyber insurance cover open source software vulnerabilities?

Cyber insurance can cover losses resulting from vulnerabilities in open source components used in your software or infrastructure, provided you maintained reasonable security practices including dependency monitoring, timely patching, and vulnerability scanning. Coverage includes your own breach costs and client liability if vulnerabilities in your products led to customer breaches. Known vulnerabilities not remediated within reasonable timeframes may be excluded.

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How does cyber insurance handle SLA breaches due to cyber incidents?

Coverage for service level agreement breaches varies by policy. Some cyber insurance policies cover contractual penalties resulting from cyber incidents, while others exclude contractual liabilities. Business interruption coverage typically compensates for your lost revenue but may not cover SLA penalties owed to clients. We work to secure policies with the broadest contractual liability coverage available and advise on SLA terms that align with insurance coverage to minimize gaps.

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What documentation do I need for a cyber insurance claim?

For cyber insurance claims, you'll need incident timelines, forensic investigation reports, affected client lists, notification documentation, recovery cost invoices, business interruption calculations, and any legal or regulatory correspondence. For IT firms with multi-client incidents, detailed client impact assessments are essential. We guide you through the documentation process and work with forensic experts to ensure proper evidence collection from the start of an incident.

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Does cyber insurance cover cryptocurrency mining malware?

Yes, cyber insurance covers losses from cryptocurrency mining malware (cryptojacking) including investigation costs, system remediation, increased cloud computing costs, and business interruption. For IT firms, coverage extends to client systems affected by mining malware that spread through your infrastructure. The policy covers both your direct losses and third-party liability for client resource consumption and system performance degradation.

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Are DDoS attacks covered by cyber insurance?

Yes, cyber insurance covers losses from distributed denial-of-service attacks including business interruption, emergency mitigation costs, and extortion payments if attackers demand ransom to stop the attack. For IT firms providing services to clients, coverage extends to client business interruption and liability claims. Some policies include DDoS mitigation services as a preventive benefit. This coverage is particularly important for cloud providers and SaaS companies.

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Can I get cyber insurance if I work with government or defence clients?

Yes, cyber insurance is available for IT firms working with government and defence clients, though you may face additional underwriting scrutiny and requirements. Insurers will assess your security clearances, compliance with government security standards, and classification levels of data handled. Some policies exclude nation-state attacks, which is a concern for government contractors. We work with specialist insurers experienced in this sector to secure appropriate coverage.

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Does cyber insurance cover data recovery costs?

Yes, cyber insurance covers data recovery costs including forensic data recovery services, backup restoration, data reconstruction, and specialist recovery for corrupted or encrypted data. For IT firms, this includes both your own data and client data you're responsible for. Coverage typically extends to emergency data recovery services, expedited recovery costs, and temporary data hosting during recovery. This is essential protection given IT firms' critical data dependencies.

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How does cyber insurance work with client contracts requiring insurance?

Many enterprise clients require IT vendors to carry specific cyber insurance coverage as a contractual condition. We ensure your policy meets these requirements including minimum coverage limits, specific endorsements, and certificate of insurance provisions. We can review client contracts before you sign them to identify insurance requirements and ensure your policy provides adequate coverage. This is increasingly important as clients impose stricter insurance requirements on IT vendors.

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Does cyber insurance cover remote work security incidents?

Yes, cyber insurance covers security incidents involving remote workers including compromised home networks, personal device breaches, and remote access vulnerabilities. For IT firms with distributed teams accessing client systems remotely, this coverage is critical. Insurers may require specific remote work security controls such as VPNs, endpoint protection, and multi-factor authentication. We ensure your policy adequately covers your remote workforce model.

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Are API security failures covered?

Yes, cyber insurance covers losses from API security failures including authentication bypasses, injection attacks, and data exposure through API vulnerabilities. For software companies and SaaS providers, API security coverage is essential. This includes your own losses from API breaches and third-party liability for customer data exposed through API vulnerabilities. Coverage extends to both your APIs and third-party APIs you integrate with.

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Can I get coverage for international operations?

Yes, cyber insurance can provide global coverage for IT firms with international operations, clients, or data processing. Policies can be structured to cover multiple jurisdictions, comply with local insurance regulations, and address varying data protection laws. For IT firms serving international clients, we ensure your policy provides adequate territorial coverage and addresses cross-border data transfer risks and regulatory exposures.

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Does cyber insurance cover source code theft?

Cyber insurance covers costs associated with source code theft including forensic investigation, security remediation, client notification if client code was stolen, and crisis management. However, the intellectual property value of stolen code itself is typically not covered under cyber insurance. For comprehensive protection, software development companies should consider combining cyber insurance with intellectual property insurance and crime insurance for stolen digital assets.

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How often should IT firms review their cyber insurance?

IT firms should review cyber insurance annually at renewal and whenever significant business changes occur including client base growth, new service offerings, technology stack changes, compliance certifications, or merger and acquisition activity. Given the rapidly evolving cyber threat landscape and changing client contractual requirements, regular reviews ensure your coverage remains adequate. We provide annual policy reviews and proactive recommendations for coverage adjustments.

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Does cyber insurance cover zero-day exploits?

Yes, cyber insurance covers losses from zero-day exploits (previously unknown vulnerabilities) in your systems or software. This includes breach response costs, client liability, and recovery expenses. Zero-day exploits are generally considered unforeseeable and therefore insurable, unlike known vulnerabilities that weren't patched. For software companies, coverage extends to customer breaches resulting from zero-day vulnerabilities in your products, making this protection particularly valuable.

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Are managed security service providers (MSSPs) covered?

Yes, specialist cyber insurance is available for managed security service providers with coverage tailored to MSSP-specific risks including failure to detect threats, security monitoring errors, incident response negligence, and security tool failures. Given MSSPs' heightened professional liability exposure and client expectations, comprehensive coverage combining cyber insurance and professional indemnity is essential. We work with insurers experienced in MSSP risks to secure appropriate coverage.

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What is the typical deductible for IT firm cyber insurance?

Deductibles for IT firm cyber insurance typically range from £5,000 to £50,000 or more, depending on your business size, risk profile, and desired premium. Higher deductibles reduce premiums but increase out-of-pocket costs during incidents. For multi-client breaches, a single deductible usually applies to the entire related incident. We help you select an appropriate deductible that balances affordability with manageable incident costs.

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Does cyber insurance cover reputational damage for IT firms?

Cyber insurance includes crisis management and public relations coverage to help protect and restore your reputation following a cyber incident. This covers PR consultants, media management, customer communication, and reputation monitoring. However, the indirect business losses from reputational damage (such as lost future sales) are typically not directly covered. Business interruption coverage compensates for measurable revenue losses during the immediate aftermath of an incident.

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How does cyber insurance handle subcontractor security failures?

Cyber insurance can cover your liability for security failures by subcontractors working on your behalf, provided you maintained reasonable vendor management practices. This is important for IT firms that subcontract development, security testing, or managed services. Coverage typically requires documented vendor vetting, contractual security requirements, and oversight procedures. We ensure your policy includes appropriate vendor liability coverage and advise on vendor management practices that support coverage.

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