Cyber insurance claims can feel complex, especially the first time. This guide shows when you can claim, how the process works, and what to expect from your insurer, including steps to improve your chances of a smooth payout.
You can make a claim when a covered cyber incident disrupts your business or causes financial loss. Policies vary, but most cyber insurers in the UK will cover both direct losses to your business and claims made against you by others. Common events that trigger claims to consider:
Here are a couple of examples to consider to help you understand how cyber insurance responds in real incidents and what costs are typically covered.
Events outside your policy terms, such as state-sponsored attacks, pre-existing breaches, or poor cyber hygiene, are typically excluded.
Speed matters; most insurers require you to notify them within 24 to 48 hours of discovering a cyber incident. If you miss that window, the claim can be reduced or denied. Acting quickly, keeping accurate records, and following the correct steps are the keys to a successful payout.
Contact your insurer or broker as soon as you confirm an incident. Share the basic facts: what happened, when it occurred, and which systems or data are affected. Do not wait until you have the full picture; reporting early protects your position and allows experts to step in quickly.
Many cyber policies give you immediate access to an incident response panel, including IT forensics, specialist legal advisers, and crisis PR consultants. Use the insurer’s approved vendors rather than sourcing your own. This ensures the cyber insurance costs are covered and avoids disputes about eligibility later.
Keep a clear record of what happened. Insurers usually ask for:
The more detail you provide, the easier it is for the insurer to confirm the claim and move to settlement.
Your insurer will guide you through the regulatory and reputational fallout. Their legal partners will handle reporting obligations, such as notifying the ICO within 72 hours of a data breach. PR specialists will draft customer communications and manage media inquiries to limit long-term damage.
Once the investigation is complete, the insurer will confirm which costs are covered and the settlement value. Typical payouts include recovery costs, business interruption, and third-party liabilities. The timeline can range from a few weeks for straightforward cases to several months if regulators or multiple parties are involved.
The faster you notify, the clearer your evidence, and the closer you stick to your policy terms, the smoother your claim will be. Read our expert guide on cyber liability insurance, to understand it in more detail.
Once your claim is accepted, the insurer confirms the payout and timeline. Most cyber insurance settlements are finalised within a few weeks; however, complex cases involving regulators or third parties can take several months to resolve.
Once your claim is accepted, the insurer confirms the payout and timeline. Most cyber insurance settlements are finalised within a few weeks; however, complex cases involving regulators or third parties can take several months to resolve.
Settlements are designed to restore operations and cover third-party costs, not to make your business whole. Some losses fall outside the scope of cover, and knowing these limits helps set realistic expectations before you claim.
Once your claim is logged, the insurer follows a structured process to investigate, manage, and settle it. Understanding this process helps you work with them more effectively.
An incident response team works to stop the attack, limit damage, and preserve evidence. Digital forensics experts determine how the breach occurred and which data or systems were compromised.
If the incident involves personal data, your insurer’s legal team can help notify the Information Commissioner’s Office (ICO) within the required 72 hours. They will also guide you on informing affected customers and meeting industry-specific compliance rules.
If the incident involves extortion, specialists handle negotiations with the attacker. In other cases, the insurer calculates losses, including business interruption, recovery costs, and third-party claims.
IT teams restore data, rebuild systems, and patch vulnerabilities. Many insurers also fund security audits or extra controls to reduce the risk of future claims.
CyberSure Insight: Knowing these stages in advance can clarify your role during a claim. It ensures you provide the correct information and make faster recovery decisions.
Common reasons include late notification, poor cyber hygiene, excluded events, and incidents that fall outside your policy wording. See our cyber insurance exclusions guide for a full breakdown.
A strong claims outcome starts before the incident happens. Insurers pay faster and more in full when you prove you took security seriously and followed your policy terms. These same actions can also reduce your premium at renewal.
Most policies require core protections, including multi-factor authentication, endpoint detection and response (EDR), regular backups, and patch management. Proving these are in place reduces disputes over whether you met policy conditions.
An annual review helps you identify weaknesses before an attacker does. It also gives you up-to-date evidence to share with your insurer if you need to explain why an incident happened.
If your cover does not align with how you store data, deliver services, or work with suppliers, gaps can appear. Review your policy wording annually and update it if your business undergoes any changes.
Pre-approved legal, PR, and forensic teams can respond immediately without needing sign-off. This speeds up containment, protects your reputation, and streamlines the claims process.
Making a claim can feel unclear if you have never faced one before. These common questions explain how claims work, what’s covered, and why some are denied.
Notify your insurer as soon as you become aware of an incident, typically within 24 to 48 hours. They will connect you with approved incident response teams, legal advisers, and PR support. You will need to share details of the event and evidence of what was affected.
Most UK policies cover ransomware, including negotiation and payment, as long as you meet the policy’s security requirements. Insurers will also cover recovery costs, forensic investigation, and system restoration.
You should provide system logs, emails, or IT reports that show how the incident happened and when. Keep copies of invoices, costs, and all relevant communications with customers or regulators. A clear paper trail streamlines the claim process.
Yes. Claims are often denied if you miss the notification deadline, fail to meet basic security standards like MFA, or the event falls under an exclusion such as state-sponsored attacks. Always check your policy wording.