Cyber Risk Insurance

Cyber Insurance is not an option, it is a must for all business. Protect your business from the major financial consequences that a cyber attack can cause.

What is it?

Cyber Insurance is protection for a digital age. As the industry has transitioned from the industrial to the digital age so has the risk to a business. In today's business world, all businesses use a digital network, whether it's to trade online, store company documents or process payroll. Emerging risks from a digital world include sophisticated cyber theft attacks which involve businesses being defrauded and unknowingly transferring money to cyber criminals.

There is also an increasing amount of regulation which makes companies legally responsible for how they manage data and the personal and company records that are stored electronically.

A Cyber Insurance policy is designed to protect your business from a breach of your digital network and the resultant financial loss which can extend to:

Financial loss arising from cyber theft

Loss of your company profits

Fines and Penaties payable for breaching privacy regulation laws

Losses payable to others for breaching their right to privacy

Who needs Cyber Risk Insurance?

Every business needs a form of cyber insurance protection. Whether your business is online, industrial or a professional services business - all organisations will have a digital network of some description.

A digital exposure can be as simple as employee records being held on your work computer. In the event any personal records are exposed you are obliged to notify the affected individuals.

The biggest digital threat to SME businesses today are phishing scams which encourage users to click on a link which leads to your digital network being encrypted. The cyber criminal will then demand a ransom for the key to unencrypt your data. This type of event is the single biggest cause of claims for Cyber Insurance in Australia.

Traditional insurance policies such as Fire, Theft, Business Pack policies and the like specifically exclude claims that arise from a data breach including ransomware. A comprehensive cyber insurance policy protects your business from the financial fallout of a cyber attack on your business.

What is covered?

Cyber Insurance covers your business against the financial losses which can hit your business following a cyber attack.

The types of attack which can be covered include a cyber event such as:

Hacking attack

Cyber Theft from fraudulent representation

Ranswomware

Malicious code or malware

Denial of service attack on your operating system

Industrial espionage

Identity or data theft

A comprehensive cyber insurance policy will provide covage against the following:

Loss of your profits / revenue as a result of having your digital network compromised

Additional expenses required to manage a cyber event response. This can include legal costs, crisis management costs, notification costs and forensic IT costs to establish the cause of the breach and a remediation plan.

Losses payable to others including third parties such as customers, clients, suppliers and any other party who has had their right to privacy breached.

What's not covered?

Cyber insurance does not cover:

Incidents or claims known prior to the policy commencing

Accidental personal injury or property damage (see Public Liability)

Professional liability claims for negligence in your professional duty of care (see Professional Indemnity)

Claims made against directors and officers (see Management Liability)

Damage from intentional acts

Your business becoming insolvent

To get a quote that provides you with the right cover it's important you speak with a cyber expert who can advise you on the type of Cyber Insurance that is right for you.