Cyber Liability Insurance and The Contracting Sector: A Key Addition to SSR Combined

For businesses operating within the contracting sector, from facilities management firms to specialist contractors, the need for robust cyber liability insurance has never been more important and the risk of a cyber-attack is a present-day reality for business worldwide. At SSR, we understand the evolving risks our policyholders face and are pleased to announce the addition of cyber liability insurance to our existing SSR Combined product, underwritten by QBE.

According to the Cyber Security Breaches Survey 2024, the average annual cost of cyber crime (excluding phishing) for businesses is estimated to be approximately £1,120 per victim, with half of those business surveyed reporting some sort of cyber attack or breach of cyber security in the last year.

Cyber liability insurance is designed to protect businesses against the financial impact of cyber-attacks, data breaches, and other IT-related risks. The policy typically covers both first-party and third-party costs. First-party coverage includes expenses related to responding to and recovering from an attack, such as data restoration, business interruption, and notification costs. Third-party coverage extends to legal costs and damages from claims filed by customers or partners who have been affected by the breach.

Our cyber liability wording provides cover for both first-party and third-party costs as stipulated above, including optional extensions for cyber business interruption (to cover loss of business income due to a network security breach) and social engineering fraud, whereby an employee has been misled into transferring money, property, products, goods or services to a recipient.

Like many other industries, the contracting sector has adopted digital tools and technologies to streamline operations, manage projects, and enhance communication. While this has driven efficiencies within the sector, it has also introduced vulnerabilities that could be exploited by cyber criminals. From ransomware attacks to phishing scams, contractors are prime targets for a wide range of cyber threats.

Digital record-keeping and the storage of sensitive data, such as client information and financial records, can lead to significant reputational damage and regulatory fines if compromised. Moreover, the nature of contracting projects means that delays or disruptions can be detrimental to deadlines, budgets and client relationships. Without cyber liability insurance, the financial and operational repercussions from a cyber-attack could be devastating to a business of any size.

At SSR, we recognise that the risks faced by our clients are diverse. Our partnership with QBE means our clients benefit from a trusted and comprehensive insurance solution that provides peace of mind in an uncertain digital landscape. With the increasing regulatory scrutiny around data protection and cyber risk management, investing in cyber liability insurance is not only a smart risk management decision but also a compliance necessity.

In an era where digital information is the norm, the addition of cyber liability coverage to the SSR Combined product offers a crucial safety net for contractors. This strategic expansion ensures that our clients in the contracting sector are not only covered for traditional risks but also for the ever-growing cyber threats facing their operations. We are committed to helping our clients navigate the complexities of modern risk management. With cyber liability insurance, we’re ensuring that contractors can operate with confidence.

A cover summary for the cyber liability section can be found here and our enquiry form can be downloaded here. Please call us on 0117 9300 100 for further information or to discuss your clients’ cyber liability requirements.