Cyber Protection Insurance at a Glance
What Type of Cover is Cyber Protection Insurance?
A fairly new kind of cover, Cyber Protection Insurance is necessitated by the rise in data breaches and incidents of computer hacking. It protects your business from the devastating financial consequences of these crimes.
Does My Business Need Cyber Protection Insurance?
In our computer-reliant world, any business that has a website and holds computer records is a target for an attack. If your company suffers a breach, you stand to lose money and intellectual property. If the attack compromises customers’ records, you can lose your customers’ trust as well as your business’s reputation.
Are Cyber Attacks a Serious Problem?
In 2016 Prime Minister, Malcolm Turnbull called the reach and scale of cybersecurity attacks against public and private organisations unprecedented.
Cyber threats are of significant concern to all Australians, so much so that the Senate passed the Privacy Amendment (Notifiable Data Breaches) Bill 2016. This requires all persons who are aware of security or data breaches to notify the Office of the Australian Commissioner within 30 days as well as individuals who may have their personal information unlawfully disclosed.
These statistics also underline the impact of cybercrimes:
- 22 per cent of small or medium-sized companies who experienced a data breach had to shut down their businesses right away.
- Small businesses experience 58 per cent of all data breaches.
- In 2018 there were 177,519 cyber scams reported. A total of $107,032,111 was lost in 9.9 per cent of these attacks.
What Will a Cyber Protection Insurance Policy Cover?
Insurance policies differ in the areas and amounts of cover they provide. You should always consult with your insurance broker to find out the specifics of your policy. Here is a general idea of what a Cyber Protection Policy typically will cover.
Expenses Considered 'Extra'
What Costs Are Not Usually Covered by Cyber Protection Insurance?
Expenses Cyber Protection Insurance typically does not cover. However, check with your insurance broker for the details specific to your policy
- Thieves who use the internet to steal your money
- Illegal acts committed by you or your business
- Computer hardware damages
- Cyberattacks based on information you knew
A staff member opens an email infected with a ransomware virus. The virus immediately halts your access to your data and your computer systems. The ransomware tells access denied until you pay a specific amount of ransom.
Perpetrators of cybercrime will count on businesses agreeing to pay so they can resume operations. This affects your bottom line. Additionally, when customers hear of the breach, they often lose trust in your business. Some customers will file lawsuits against the company which suffered the attack, especially if a work stoppage cost a customer a large amount of money.
A Cyber Protection Insurance Policy can help you recover lost revenue, pay for the costs of data recovery and security updates, legal fees, and crisis management.
Cyber Protection Insurance can do more than give you peace of mind, and it can save your business if you are the victim of a cyberattack.