SIB says brokers must be prepared to provide customised cyber cover

The Society of Insurance Broking (SIB) has published a good practice guide suggesting what brokers need to do to ensure that cyber policies they recommend suit each client’s needs.

The guide explains that cyber security insurance should include cover for business interruption, multi-media liability and reparation costs.

Brokers must also consider making provision for future threats. The guide says that while all businesses need to understand their specific cyber security liability, brokers must be prepared to provide customised cover that takes into account the specific impact a cyber related incident could have on their client.

It follows the increasing slew of cyber attacks on businesses.

Improving cyber security 

Liz Foster, non-executive director of the SIB, said: “New and emerging technology will inevitably present new threats on top of those we currently manage for our clients. Insurance brokers must make sure that the cyber insurance coverage they present to their customers best [meets] their needs and continues to remain up to date.”

The guide outlines four key priorities for broking cyber security cover, including security provisions, for clients. These are:

1. Maintaining good compliance with General Data Protection Regulation (GDPR).

2. Providing relevant cyber coverage.

3. Understanding how to respond to a cyber incident.

4. Not forgetting the basics.

Foster added: “Cyber is not going to go away, especially with the increasing reliance on digital technology and automation.”

Launched in September 2018, the SIB is a professional body for those working in insurance broking; it aims to promote high standards and ethics as well as work to gain public trust. The SIB further liaises with key industry stakeholders, including the government.

The SIB is a key component to delivering the Chartered Insurance Institute’s manifesto.