If your business has a website or electronic records you're vulnerable to cyber hackers

What is Cyber Protection ?

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

If you see it, report it !!!

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 unauthorised 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

Why do I need it ?

If your business has a website or electronic records you’re vulnerable to cyber hackers. In fact, it 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.

'The scale and reach of malicious cyber activity affecting Australian public and the private sector organisations and individuals is unprecedented. The rate of compromise is increasing and the methods used by malicious actors are rapidly evolving

(Late Prime Minister Malcolm turnbull, Australia's cyber security strategy report. 2016)

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There were 177,519 scams reported in 2018 with 9.9% having a financial loss of  $107,023,11. (scam watch statistics Australian Competition & Consumer Commission)

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58% of victims of data breaches are categorised as small businesses. (Summary findings Verzion 2018 data breach Investigations Report 2018)

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Among small to medium sized businesses that have experienced a successful infiltration of the corporate network by ransomware, 22%reported that they had cease business operations immediately (identitical 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)

What Can it Cover?

Cyber Insurance policies vary in the benefits they provide.

We can help you find the most suitable product that meets the needs of your business. To give you idea below are the types of cover that policy may include.

Type of Cover

Potential Benefits

Business Interruption losses

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

Cyber Extortion

The costs of the 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

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.

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 cost of copyright infringement, defamation claims and misuse of certain types pf intellectual property online.

Extra Charges

Crisis Management expenses

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

Notification and monitoring expenses

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

What Usually Isn't Covered?

Exclusions and the excess you need to pay can vary greatly depending on the insurer we use. Polices generally wont include cover for :

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

There are other exclusions as well which we would discuss further on a individual basis.

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 the opening your business up to further extortion attempts, you hire external IT consultants to recover your back- up data and files 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.

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 up grading your software, and ongoing crisis management expenses.

A product disclosure statement (PDS) is available from us. You should consider the PDS in deciding whether to acquire or continue to hold, business insurance.

Important note: This information is provided to assist you in understanding the terms, implications and common considerations with this type of insurance. It does not constitute advice, and is not complete, so please discuss the full details with us.

Get in Touch Today to see how we can help.