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Welcome to Martin Insurance Services. A professional solution for all your insurance needs

Cyber Liability Insurance

Technology has changed the way we communicate.  More affordable computers have resulted in an increase in computer use and information/communicating traffic and the use of the Internet in the workplace is now the norm.


If you use the Internet or correspond via E-mail you are vulnerable. 


Companies can be held liable for Defence costs and Damages arising from Defamation, Breach of (a) Privacy, (b) Intellectual Property, or (c) Statutory Duties as a result of electronic communication.   


Insurance Policies now exclude E-risk, i.e:

  • Liability to a third party due to libel contained in an E-mail.

  • Liability to a third party due to a virus transmitted by you.

  • Liability to members of your staff due to them being exposed to sexual harassment via electronic systems, e.g., pornographic images unintentionally viewed on a colleague’s PC.

  • Damage to your computer network due to harmful virus or hacker.

  • Loss of revenue due to downtime of a computer system caused by a virus or hacker.

  • Theft of your money (or your clients’) due to hacking or employee electronic theft., and

  • Threat or extortion relating to your computer system.

Claims Examples:

Claims made by third parties or employees –

British Gas were forced to pay over £200,000 to an ex-employee arising from comments circulated via the Internet that breached his privacy.


Norwich Union paid Western Provident £450,000 in order to settle an action that an
E-mail at Norwich Union incorrectly alleged that Western Provident was about to be investigated by the Department of Trade and Industry.


Easy Group sought compensation from 60 separate companies who had the word ‘easy’ in their registered Internet domain name.  In one specific case Easy Group took legal action against easypeople.co.uk and demanded that they pay the fee of £100,000 for its legal costs in pursuing the matter.


A list of more than 1,800 web users and their personal details had been left at
www.ukshops.co.uk, an online shopping mall that directs buyers to well-known names such as Boots, Comet, Debenhams and Interflora.  On display were users’ names, E-mail addresses, postal addresses, gender and age group.  Following the press’s investigation the UK Information Commissioner’s Office has agreed to act on behalf of the thousands of consumers who have had their details exposed.


Kodak mispriced a top quality digital camera at £100 instead of £329.  Not surprisingly, they received over 10,000 orders in a very short space of time.  Following press coverage and the threat of legal action, Kodak honoured the contracts which cost them of £2,300,000.


Client-held software consultant accountable for failure of bespoke accounting system to work.  Total loss exceeded £500,000.


Isabelle Terrillon successfully won £70,000 from her UK employer for sexual harassment due to pornographic emails being sent between her male colleagues.


A computer engineer who had been employed to update the computer system of a sheet metal company was fired for incompetence.  When the company refused to pay him, he hacked into its computer system and deleted their files.  It cost the company over £70,000 to rectify the damage.


Citibank lost £6.25m to a hacker using an old computer in an accountancy office in St. Petersburg.  He was arrested in the JUK and extradited to the US where he is now servicing a prison sentence.  The FBI has still not recovered £250,000 of the funds.


A dismissed IT department employee encrypted the entire database of his previous company and then demanded £1,000,000 in ransom.  The company were preparing to call his bluff, when it found out that not only had he actually succeeded but that it would cost at least £5,000,000 in computer and employee time to undo the damage.


What exactly does the policy cover?

            Claims made by third parties…

  • For damage to their computer systems and/or records (for example, through forwarding a virus or through your employees’ hacking activities.);

  • For their losses as a result of your computer systems being inaccessible or as a result you of losing their data;

  • For damage to their computer systems and/or records (for example, through forwarding a virus or through your employees’ hacking activities.);

  • For their losses as a result of your computer systems being inaccessible or as a result you of losing their data;

  • For breaches of confidentiality or rights of privacy (for example, a breach of the Data Protection Act);

  • For libel and slander due to E-mail or website content;

  • For breaches of intellectual property rights due to E-mail or website content;

 Claims made by your employees…

  • For an inappropriate workplace (for example, sexual or racial harassment charges due to E-mail content or  Internet use);

  • For breaches of confidentiality due to you misusing their employee information.           

 Your own losses…

  • The costs incurred in repairing the damage caused to your computer systems and finding, replacing or restoring your computer records as a result of a hack attack or  virus;

  • Ransom demands or threats to introduce a virus or hack into your computer systems, or to disseminate the data you hold on your computer systems to third parties;

  • Your legal expenses incurred in the enforcement of your intellectual property rights on the Internet;

  • The costs of a public relations consultant to mitigate the damage to your reputation as a result of any loss that is covered under the policy.

The policy cover in practice…


For example, if your company suffers a bad virus attack, the policy can help kin    up to three ways:

  • Pay for the costs of expert IT or forensic consultants to repair your systems and restore your data;

  • If a third party holds you responsible for their losses (either because you forwarded the virus to them, or because they relied on your computer systems’ uptime to trade) the policy will pay your legal costs and any damages that are awarded against you

  • The costs of a PR consultancy to minimise the damage to your reputation.


Our testimonials will be listed very soon