What 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.
What 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.
What 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.
What 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.
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Does My Business Need Cyber 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 Digital Attacks a Serious Problem?
While your insurance professional can address your unique circumstances, it is often a wise decision for renters or lessees to get insurance cover for property and equipment. If you're unsure about your specific circumstances, contact our expert team today.
Here's An Example:
Hope leases a storefront for her day spa. While she does not own the building, she has a large amount of money invested in all of the equipment needed to serve her customers, as well as the items that make her spa stand out from the competition.Suppose a fire destroys the building. Most, if not all, of Hope’s equipment and decorative items will also be lost. If she does not have the necessary cover, Hope will experience a tremendous financial loss. The loss could be significant enough to force her to close her business permanently.However, if Hope has insurance that covers the property and equipment, she will be able to replace the things needed to operate her business.
In 2016, 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% of small or medium-sized companies who experienced a data breach had to shut down their businesses right away
- Small businesses experience 58% of all data breaches
- In 2018, there were 177,519 cyber scams reported. A total of $107,032,111 was lost in 9.9% of these attacks.
Case Study
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.
Safe Work Australia, Key Work Health Safety Statistics 2014
"Penalties awarded against companies and its directors or officers for work health safety breaches have increased by 43% to $22.3 million in one year. Penalties now average $62,000 per company."
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Did You Know?
Many businesses think it won't happen to them, but statistics show otherwise. In fact:
(Chubb 2016 Private Company Risk Survey)
The likelihood of a claim that could be covered by a Management Liability policy has tripled in the last five years, with 50% of notifications resulting in a claim.
Chubb 2016 Private Company Risk Survey
The most common claims are for employment practices like bullying, harassment and wrongful dismissal.
Chub, 2016 Private Company Risk Survey
Major claims by amount relate to crime - including employee fraud.
Are Digital Attacks a Serious Problem?
In 2016, 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% of small or medium-sized companies who experienced a data breach had to shut down their businesses right away
- Small businesses experience 58% of all data breaches
- In 2018, there were 177,519 cyber scams reported. A total of $107,032,111 was lost in 9.9% of these attacks.
What Will a Policy Cover?
What Will a 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 will typically cover.
Type of Cover
- Losses Caused by Interruption of Business
- Cyber Extortion
- Replacing Electronic Data
- Privacy and Security Liability
- Defence Costs
- Electronic Media Liability
- Regulatory Breach Liability
Potential Benefits
- Covers revenue lost because of a cyber attack
- Losses sustained hiring experts or paying attackers’ demands to prevent future cyber attacks
- Pays the cost of recovering data lost in a breach
- Covers reputation damages that result from a data breach involving third-party data held in your system
- Pays the amount necessary to mount a legal defence as a result of a cybercrime
- Covers the cost of defamation claims, misuse of intellectual property, and copyright infringement
- Pays the cost of charges coming from a government regulator’s investigation
Expenses Considered 'Extra'
Type of Cover
- Monitoring and Notification Charges
- Crisis Management
Potential Benefits
- The cost of routinely overseeing a customer’s online information and making the customer aware of potential breaches
- Pays for the charges incurred because of a cybercrime
What Costs Are Not Usually Covered by Cyber Insurance?
The following expenses are typically not covered by cybercrime insurance. However, check with your insurance broker at Connect Business Insurance 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
Case Study
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.
