If your business relies on a website or stores electronic data, it faces the risk of cyber attacks. In today’s digital landscape, it’s not a question of if, but when a cyber threat will occur. The impact of such an attack extends beyond financial loss - it can compromise your intellectual property, expose sensitive customer information, and ultimately damage your reputation.
What is Cyber Protection Insurance?
Cyber Insurance helps safeguard businesses from the financial losses and legal responsibilities that arise from cyber-attacks. These policies generally cover a range of cyber risks, such as data breaches, network security failures, ransomware, and other cyber incidents, along with legal costs and potential regulatory fines.
There are two main policy types / extensions we recommend to businesses and organisations looking to arrange Cyber Insurance:
- CYBER CRIME INSURANCE (OR CYBER CRIME POLICY EXTENSION)
A typical Cyber Crime Policy will provide cover for theft of money as a result of a cyber crime event, for example social engineering fraud, phishing, phreaking or other forms of cyber fraud involving loss of money.
Limits available are generally up to $250,000. Limits above this will typically require a more comprehensive risk analysis and underwriting assessment. - CYBER LIABILITY & PRIVACY PROTECTION INSURANCE
A typical Cyber Liability and Privacy Protection Policy will provide cover for:- First Party (own) costs and expenses (excluding theft of Money) as a result of a Cyber event, or breach of Privacy as defined by the Insurers policy wording.
- Fines and penalties incurred as a result of a Cyber event, or breach of Privacy, as defined by the Insurers policy wording.
- Business Interruption/Consequential Loss (excluding theft of Money) as a result of a Cyber event, or breach of Privacy as defined by the Insurers policy wording.
- Third Party costs and expenses (excluding theft of Money) as a result of a Cyber event, or breach of Privacy as defined by the Insurers policy wording.
Limits available are generally up to $10,000,000. Limits above this will typically require a more comprehensive risk analysis and underwriting assessment.
Did you know?
ASD recorded nearly 94,000 cybercrime reports in 2023, a 23% rise from the previous year.
Australian Signals Directorate's Annual Cyber Threat Report (2022-23)
The average cost per attack to small businesses is $46,000 and $97,000 for medium businesses.
Australian Signals Directorate's Annual Cyber Threat Report (2022-23)
Cybercrime is estimated to cost the Australian economy approximately $43bn annually.
UNSW: Cybercrime an estimated $42 billion cost to Australian Economy (2021)
