Cyber Insurance
Cyber Protection is a relatively new form of cover. It is designed to help protect your business from the financial impact of computer hacking or data breach.
If your business has a website or electronic records, you’re vulnerable to cyber hackers. In fact, it is 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.
In February 2017, the Senate passed the Privacy Amendment (Notifiable Data Breaches) Bill 2016 – setting up a mandatory nationwide data breach notification scheme. This means if you spot a security breach which may cause unauthorized access or disclosure of personal information, you’re legally required to report it to the Office of the Australian Commissioner within 30 days. You’ll also need to notify the people whose information has been affected.
DID YOU KNOW?
- Australia is the 5th most targeted country for cyber attacks globally.
- More than 20% of Australian businesses have experienced cybercrime.
- 75% of cyber attacks come from human error.
- The average cost of a cyber incident in Australia is $276,232 (in 2015).
Cyber policies cover various aspects:
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Business interruption |
Financial loss you may suffer as a result of a cyber attack |
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Cyber extortion
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Costs of an attack, such as hiring negotiation experts, covering extortion demands and prevention of future threats |
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Electronic data replacement |
Costs of recovering or replacing your records and data |
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Security and privacy liability |
Damages to your reputation resulting from data breaches, such as loss of third party data held on your system |
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Defence costs |
Funds the legal costs of defending claims |
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Regulatory breach liability |
Covers legal expenses and the costs of fines arising from investigation by a government regulator |
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Electronic media liability |
Costs of copyright infringement, defamation claims, and misuse of certain types of intellectual property online |
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Crisis management expenses |
Provides cover for the costs of managing a crisis caused by cyber hackers |
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Notification and monitoring expenses |
Costs of notifying customers of security breach and monitoring their credit card details to prevent further attacks |
CASE STUDY
Your employee opens an email attachment infected with a ransomware virus. Access to your systems and data are blocked and the virus software informs you that it will remain unavailable unless you pay the ransom amount. Rather than paying the hacker and opening your business up to further extortion attempts, you hire external IT consultants to recover your back-up data and files and upgrade your antivirus software. Over the week it takes to apply these fixes, you have to close your business, causing you to lose revenue. It also affects your reputation with your clients; one of your clients threatens to sue you for the delay which cost them a large amount of money.
A Cyber Protection Insurance policy allows you to recover some of the costs you incur during this incident. Depending on your policy, you may be able to make a claim for losses caused by the interruption to your business, the costs of recovering your data and upgrading your software, and ongoing crisis management expenses.
How confident are you that your Insurance Risks are adequately covered?
Peter Cameron Insurance Broker aims to arrange the most appropriate cover for you by providing tailored solutions to suit your business needs. We will also support and assist you, in the event of a claim.
Speak to us to ensure your business is protected with appropriate Cyber insurance today.
*Please note all insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording before deciding whether the insurance policy meets your needs.
