The scale and reach of malicious cyber activity affecting Australian public and private sector organisations and individuals is unprecedented. The rate of compromise is increasing and the methods used by malicious actors are rapidly evolving.
Prime Minister Malcolm Turnbull, Australia’s Cyber Security Strategy Report, 2016
Cyber Protection Insurance is a relatively new form 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.
Cyber Insurance policies vary in the benefits they provide.
Your Steadfast insurance broker can help you find the most suitable product that meets the needs of your business. To give you an idea, here’s the type of cover that your policy may include:
Business interruption losses - Covers financial loss you may suffer as a result of a cyber attack
Cyber Extortion - The costs of a cyber attack, such as hiring negotiation experts, covering extortion demands and prevention of future threats.
Electronic Data Replacement - The costs of recovering or replacing your records and other business data.
Security and Privacy Liability - Damages to your reputation resulting from data breaches, such as loss of third party data held on your system.
Defence costs - Funds the legal costs of defending claims.
Regulatory breach liability - Covers legal expenses and the costs of fines arising from investigation by a government regulator
Electronic media liability - The costs of copyright infringement, defamation claims and misuse of certain types of intellectual property online.
Crisis Management Expenses - Provides cover for the costs of managing a crisis caused by security hackers.
Notification and Monitoring Expenses - The costs of notifying customers of a security breach, and monitoring their credit card details to prevent further attacks.
Exclusions and the excess you need to pay can vary greatly depending on 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.
There are other exclusions which your Tudor insurance broker can outline for you.