01 / The meaning
What it means.
Examples include compromised email, unauthorised account access, ransomware or exposed customer information. A security alert is a reason to assess what happened, not proof of the full extent of a breach. The technical event, any legal reporting obligation and the insurance trigger are separate questions. A supplier’s system failure can also affect the business even where its own network appears normal.
Follow a practical incident response process: involve appropriate technical help, preserve useful evidence and consider steps to contain harm. Where a cyber policy provides an incident hotline or nominated response team, check how to engage them. Avoid assuming all response suppliers are automatically approved or all lost revenue is covered. Record discovery time, affected systems and actions taken, as these details can support both technical recovery and policy assessment.
02 / Put it in context
A practical example.
Hypothetical example: a retailer discovers that its invoicing mailbox has been accessed without permission. It secures the account with technical assistance, preserves relevant records and investigates altered payment instructions while considering insurer notification.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify affected accounts, systems, data and business processes.
- Record discovery time and preserve logs and relevant communications.
- Check the policy’s incident contact and response-provider requirements.
04 / Start a useful conversation
A question for your broker.
What has been affected, what needs immediate action, and how should the incident be notified?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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