With cyber attacks making headlines over the past year, disrupting supply chains and bringing operations to a halt, it has become clear just how exposed many SMEs are to risks beyond their direct control. High profile incidents, such as the cyber attack on Jaguar Land Rover highlight how a single event affecting a major organisation can have a significant knock-on impact on its suppliers.
As supply chains become increasingly connected and more exposed, the risk of customer downtime is growing. A single cyber attack on one major business can have an immediate and devastating knock-on effect on the suppliers who rely on that customer to purchase their goods or services. This means, a business doesn’t even need to suffer a cyber incident to feel the financial impact.Introducing Customer Business Interruption Cover
One of our cyber insurance partners has launched Customer Business Interruption Cover, designed to protect businesses against financial losses resulting from cyber incidents affecting their customers. Traditional cyber insurance policies typically address two types of business interruption:- First-party business interruption, covering loss of income when your own systems are impacted by a cyber incident.
- Supplier or dependent business interruption, covering loss of income when a supplier you rely on suffers a cyber incident.
What has historically been missing is protection when your customer suffers a cyber incident.
Customer Business Interruption Cover responds when a named customer experiences a cyber attack that forces them to halt or reduce purchasing from you, resulting in a financial loss to your business. This cover helps stabilise cash flow and closes a critical protection gap many businesses may not realise exists.