Cyber Insurance: Why It's More Crucial—and Complex—Than Ever

With ransomware attacks and data breaches on the rise, and AI-powered threats evolving rapidly, cyber insurance remains one of the most important—and challenging—covers for modern businesses.

Yet, as demand for cyber protection grows, insurers are becoming more cautious, tightening policy wordings and introducing new exclusions. That means it's more important than ever to choose your cyber insurance carefully.

At LBH Insurance, we help clients navigate the complexities of cyber risk with tailored, no-obligation quotes. But before you buy, here are six key areas you should be considering beyond just the premium.

1. Coverage Scope: First-Party vs. Third-Party

Cyber policies vary widely. Make sure yours covers both internal and external losses:

Coverage Type  What It Protects Against
First-party   Direct costs like data recovery, business interruption, ransomware/extortion, and system restoration.
Third-party Legal liabilities, privacy breaches, regulatory fines, and litigation from affected customers or partners

Check for coverage of ransomware, phishing, social engineering, and system failures—these are not always standard.

2. Regulatory & Legal Support

In the wake of a cyber incident, you may face serious regulatory scrutiny. Your policy should provide:

  • GDPR & PCI DSS compliance support
  • Cover for regulatory fines, notification costs, and credit monitoring
  • Access to legal and forensic experts—crucial during breach response and reporting

3. Incident Response Services

High-quality cyber policies include immediate access to response teams, helping you limit damage and recover quickly:

  • 24/7 access to incident response specialists
  • Threat monitoring and early warning systems
  • Crisis PR, reputational support, and customer notification services
  • Credit monitoring for affected individuals

These services can cost thousands if procured separately—ensure they're included.

4. Risk Assessment & Prevention Tools

Many forward-thinking insurers offer proactive cyber risk tools, including:

  • Vulnerability scans and security audits
  • Ransomware calculators to gauge potential financial impact
  • Training modules for your staff to spot phishing and social engineering attacks

These tools don't just lower your risk—they may also help reduce your premium.

5. Watch for Common Exclusions

Not all events are covered. Watch out for exclusions such as:

  • Acts of war or terrorism (particularly in state-sponsored cyberattacks)
  • Negligence in maintaining basic cybersecurity (e.g. no antivirus or firewall)
  • Unencrypted data losses
  • Breaches caused by third-party vendors or contractors

Always ask your broker to clarify exclusions and sub-limits—they can make or break a claim.

6. Policy Flexibility & Limits

Cyber risks aren't one-size-fits-all. Your cover should reflect:

  • The volume and sensitivity of data you hold
  • Your reliance on IT systems or online services
  • The need for retroactive cover (for breaches already in progress but undetected)
  • Aggregate vs. per-incident limits—vital for businesses that face multiple threats each year

Get Expert Advice and a Tailored Quote

Cyber risk is no longer just an IT issue—it's a board-level concern. Whether you're a small business or a larger enterprise, having the right cyber insurance can protect your operations, customers, and reputation.

At LBH Insurance, we offer:

  • Tailored cyber cover
  • Access to specialist underwriters
  • Risk reviews and policy comparisons
  • Transparent advice from experts who understand the evolving threat landscape.

Don't wait for a breach to find out where your gaps are—get ahead of the risk with expert-led cyber insurance.

Call us on 01702 347889 for a no-obligation, competitive quote—and peace of mind that your cover reflects both your risk and your reputation or email enquiries@lbhinsurance.co.uk.