Cyber Insurance

Cyber protection insurance is a relatively new from of cover. It's designed to help protect your business from the financial impact of computer hacking or a data breach.

If your business has a website or electronic records, you're vulnerable to cyber hackers. In fact, it's likely that your business will suffer a cyber attack at some stage.

A cyber attack could cost your business more than money. It could also threaten your intellectual property and put customers' personal information at risk -which could damage your reputation.

What

can it cover?

First party losses

Business Interruption losses

Covers financial loss you may suffer as a result of a cyber attack.

Electronic data replacement

The costs of recovering or replacing your records and other business data.

Defence costs

Funds the legal costs of defending claims

Electronic media liability

The costs of copyright infringement, defamation claims and misuse of certain types of intellectual property online.

Notification and monitoring expenses

The costs of notifying customers of a security breach, and monitoring their credit card details to prevent further attacks.

Cyber extortion

The costs of a cyber attack, such as hiring negotiation experts, covering extortion demands and prevention of future threats.

Third party losses

Security and privacy liability

Damages to your reputation resulting from data breaches, such as loss of third party data held on your system.

Regulatory breach liability

Covers legal expenses and the costs of of fines arising from investigation by a government regulator.

Extra expenses

Crisis management expenses

Provides cover for the costs of managing a crisis caused by cyber hackers.

What usually isn't covered?

Exclusions and the excess you need to pay can vary greatly depending one your insurer. Policies generally won't include cover for:

Damage to computer hardware
Criminal actions committed by you or your business
A cyber attack based on facts of which you were aware
Criminals using the internet to steal money from you

9.9%

There were 177,519 scams reported in 2018 with 9.9% having a financial loss of $107,032,111.

(Scamwatch statistics, Australian Competition & Consumer Commission, 2018)

58%

58% of victims of data breaches are categorised as small businesses.

(Summary Findings, Verizon 2018 Data Breach Investigations Report, 2018)

22%

Among small to medium sized business that have experienced a successful infiltration of the corporate network by ransomware, 22% reported that they had to cease business operations immediately (identical to the global average), and 18 percent lost revenue (higher than the global average).

(Second Annual State of Ransomware Report: Survey Results for Australia, Osterman Research, 2017)