Cyber insurance, also known as cyber liability or Cyber risk insurance in Cyprus, is a specialised solution designed to help businesses recover from financial losses caused by cyber incidents such as data breaches, cyberattacks, and cybercrime.

It complements a robust cybersecurity strategy by transferring some of the financial risks associated with cyber incidents, which helps protect a company’s digital assets, financial health, and reputation.

In Cyprus, cyber insurance is especially important, particularly as small and medium-sized enterprises drive much of the local economy.

These companies often face limited resources and increased exposure to cyber risks, making cyber insurance a critical tool for financial protection and business continuity. 

A comprehensive cyber insurance in Cyprus provides coverage for first-party losses (your company’s own losses) and third-partly losses (your liabilities to others).

• Legal and Regulatory Expenses: A small company experiences a data breach exposing customer emails. Regulators investigate and fine the company for privacy violations. Cyber insurance pays the legal defense fees and fines, helping the company avoid crippling costs.

• Cyber Extortion and Ransomware: A business is hit by ransomware, locking all its files until a ransom is paid. Cyber insurance covers the ransom payment, negotiation costs, and the IT team’s work to restore systems securely.

• Business Interruption Loss: A hacker takes down a retailer’s website for two days during peak sales. The company loses income and incurs extra costs to move to backup systems. Cyber insurance compensates for the lost sales and added expenses.

• Dependent Business Interruption Loss: A retailer’s cloud service provider suffers a cyberattack, causing the retailer’s website to go offline. Insurance covers lost income during the downtime even though the cyber event was at the third party.

• System Restoration and Data Recovery: A virus corrupts a company’s customer database. Cyber insurance covers costs to repair systems and recover data, including hiring digital forensics experts.

• Reputational Damages and Crisis Management: A healthcare clinic faces negative media after a breach exposed patient records. Cyber insurance pays for public relations experts to help manage and repair the clinic’s reputation.

• Privacy Liability: A software firm fails to secure client information properly. Customers sue for negligence and data misuse. Cyber insurance covers defense and settlement costs.

• Risk Management tools and access to experts like cybersecurity professionals, IT security specialists, forensic investigators, lawyers, and crisis communication advisors. These specialists will help you manage the incident and get your business back online as quickly as possible.

When applying for cyber insurance in Cyprus, insurers typically request some basic information to provide an initial cost estimate.

This usually includes:

• Company name
• Company website
• Year of establishment
• Number of employees
• Previous year’s revenue

These details help insurers assess your business’s size and risk profile for a preliminary quote.

Regarding cost, cyber insurance prices vary based on factors like company size, industry, cybersecurity measures in place, and coverage limits.

However, many businesses are pleasantly surprised by how affordable cyber insurance is, especially considering the extensive protection it offers.

Compared to the potentially high costs of a cyberattack, investing in cyber insurance often proves to be a smart and cost-effective decision.

Directors & Officers (D&O) insurance protects company leaders from personal financial loss if sued over management decisions, oversights, compliance failures, or employment practices.

It covers directors, senior executives, and board members against claims including shareholder lawsuits, investor disputes, regulatory investigations, client claims, and employee lawsuits.

This insurance covers investigation costs, legal fees, settlements, and fines & penalties (where legally permitted), safeguarding personal assets and protecting leaders from business-related legal actions.

Typically purchased by the company to insure its management team, D&O insurance is a key part of good governance and corporate risk management.

In Cyprus, D&O insurance is especially relevant as many organizations have holding companies registered locally while operating globally. This coverage helps companies protect their top leaders from international risks, reinforcing trust among investors and stakeholders.

 D&O policy generally covers:

• Past, present, and future directors: both executive and non-executive.
• Senior Officers and key decision-makers.
• Employees if they are named in a lawsuit connected to management decisions.
• Family members of insured persons, if they are drawn into a claim simply because of their relationship (e.g., spouses or heirs).
• The company itself, but only for certain types of claims such as security claims (for listed companies) and employment practices claims.

Claims under a D&O policy can be made by:

• Shareholders: shareholders might sue directors for breaching fiduciary duty after approving risky business decisions resulting in losses.
• Investors: investors could claim misrepresentation if financial information was incorrect or misleading.
• Regulators: regulatory bodies can initiate investigations or enforcement actions for regulatory breaches.
• Clients: Clients might claim losses due to contract breaches or negligent management decisions affecting services.
• Employees: employees may file lawsuits for wrongful termination, discrimination or harassment.
• Competitors: At times, competitors may bring claims such as allegations of unfair business.
• Creditors: creditors can claim if directors mismanage company finances leading to insolvency or failure to repay loans.

Commercial Property insurance in Cyprus protects your business buildings, equipment, inventory, and furniture from damage or loss.

This coverage helps if your property is damaged by fire, storms, theft, vandalism, or other unexpected events.

Most property owners combine property insurance with other coverage types for full protection:

• Public Liability insurance – covers costs if someone suffers bodily injury at your premises or if you damage someone else’s property (like a falling brick hitting a parked car).
• Business interruption insurance – covers lost income if you can’t operate after damage.

Commercial Property Insurance protects:

• Landlords
• Tenants
• Property owners
• Property investors
• Property management companies
• Family offices (managing family investment properties)

Commercial property insurance in Cyprus protects your property investment from financial loss when physical assets are damaged or destroyed.

What’s Protected:

Your policy covers damage from:

• Fire, lightning, and explosions
• Water damage & pipe bursts
• Aircraft and vehicle impact
• Storms, and floods
• Riots and strikes
• Earthquakes
• Vandalism
• Theft

Types of Property Insurance in Cyprus:

• Fire & Special Perils: covers only specific risks listed in your policy, such as fire, lightning, explosion, and earthquake. If the risk isn’t named, it’s not covered.
• All-Risk Policy: covers all types of damage unless specifically excluded. This broader protection includes accidental damage and unexpected events not listed in basic policies for complete peace of mind.

Your building’s insured value should cover the full cost to rebuild it today, also known as the replacement cost.

To get the right coverage, consider how much it would cost to fully repair or rebuild your property using current market rates.

Since construction costs and material prices can fluctuate, it is wise to obtain a professional property valuation every 2 to 3 years to ensure your insurance amount stays up to date

Understanding underinsurance risks in Cyprus

Underinsurance happens when the insured value is less than the true replacement or rebuild cost.

Cyprus has seen rising building costs, so this is a common risk.

Underinsurance mainly impacts partial loss claims.

For example, if your insured value covers 60% of the actual rebuild cost, your payout will be limited to 60% of any claim you make. This applies even to small repair claims, meaning you would be responsible for covering the remaining costs yourself, plus any deductible or excess.

To avoid underinsurance, regularly update your building’s insured value based on professional appraisals or valuations.