What is Cyber Insurance?

Gaining unauthorized access to data has become seemingly unavoidable. The worldwide interconnected digital technology better known as “Cyberspace” enables businesses and people to interact, converse and connect in a considerable number of ways. While these forms of communication have gradually increased and have become faster, the cyberspace is not without risks.

Cyber insurance is designed to protect businesses and their customers against cyber liabilities that they encounter. Cyber insurance reduces risk exposures by indemnifying the costs included to recover from any cyber-related event.  Some of these risks can be transferred by cyber risk insurance to the insurance market and will allow the business to financially survive in the event of a cybersecurity breach.

Cyber Insurance fills the gap between traditional insurance policies and the modern world.

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Cyber Insurance Cover for your Business

Cyber Insurance is not only a necessity for big online businesses holding vast amounts of personal data but also small-scale website owners who can have similar legal responsibilities.

Many Australian companies are obligated contractually to acquire cyber insurance to protect against third-party costs.

Almost all businesses today are dependent on their crucial data, and face possible losses through remuneration, fees, or business interruption should their data go to the public domain.

Any business operating in today’s technology risks viable exposure from external and internal emails; websites giving out company information, products and services; as well as the increased risk of internet commerce also known as “e-commerce.”

Now in Australia, recent changes in legislation mean that it is more significant than ever to think about getting a cyber insurance policy.

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Cyber risk insurance generally has two primary components:

First-Party Cyber Cover

Third-Party Cyber Cover

First Party Cyber Insurance coverage secures and compensates a business in the event of a breach in data and the adverse effects of an intrusion.  It covers top priority response costs.

First Party Cyber Insurance coverage can also assist with the following:

• IT Forensic Costs
• Public Relation Expenses
• Retrieval of Data Costs from a Damaged System
• Cyber Extortion Expenses
• Cyber Insurance Experts
• Hardware & Software
• Business interruption from the cyber attack
  

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Third Party Cyber Insurance coverage safeguards the customers of a business in the event of a data breach. When a breach in data does occur, one of the massive problems businesses face are from their own customers.

Customers entrust their data to businesses to keep them safe. When businesses break this trust even when it’s not their fault, a huge fallout is expected. Third Party Cyber Insurance focuses on issues arising from litigation and lawful expenses.

This can include the costs of defending claims that arise from:

Unintentional Privacy Breach

Confidential Information Breach including Employees

Infringement of Intellectual Property Rights

Unintentional disclosure of Financial or Personal Information

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Ask yourself:

If your system, online access, emails or operating system was attacked and shut down today could you still trade and pay the costs to get back on your feet?

If the answer is NO, you need to insure for that!

Why choose us for your cyber insurance?

Not sure what cyber insurance cover you need?

For more details regarding Cyber Insurance and how it can protect your business online and offline, complete our online quote form below or arrange a schedule to talk to one of our experts.