Do I Need Cyber Insurance?

Neil Forrester
April 7, 2022

What is cyber protection?

Cyber 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 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.

Who should consider cyber insurance?

If your business has a website or electronic records, you’re vulnerable to cyber hacking attacks. 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.

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

Former Prime Minister Malcolm Turnbull, Australia’s Cyber Security Strategy Report, 2016

 

Did you know?

  • 9.9% Online business experience financial loss due to cyber attack. 9.9% 9.9%
  • 58% of victims of data breaches are categorised as small businesses. 58% 58%
  • 22% reported they had to cease business operations immediately due to the cyber attack 22% 22%

What can cyber insurance cover?

Cyber insurance policies vary in the benefits they provide. Your insurance broker can help you find the most suitable product that meets the needs of your business. Here’s the type of cover that your policy may include:

Type of coverPotential benefits
First party losses
Business interruption lossesCovers financial loss you may suffer as a result of a cyber attack.
Cyber extortionThe costs of a cyber attack, such as hiring negotiation experts, covering extortion demands and prevention of future threats.
Electronic data replacementThe 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 costs of copyright infringement, defamation claims and misuse of certain types of intellectual property online

Extra Expenses

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.

Protect your website investment with cyber insurance

If you run an ecommerce website don’t wait until it’s too late. Protect yourself and your customers with a cyber insurance plan. Click the button to visit Tony Insurance.

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