Cyber insurance is designed to protect businesses against the costs incurred as a result of a cyber attack and a business' liability for a data breach in which personal information is exposed or stolen.
Typical business costs incurred include:
• Business interruption expenses
• Response & data restoration costs
• Legal fines & penalties
• Blackmail & extortion costs
Cyber crime insurance covers a variety of expenses associated with data breaches such as client notification costs, credit monitoring, costs to defend claims, fines and penalties, and loss resulting from identity theft.
As organisations adopt efficient and effective technology into their business they are also faced with more risks than ever before.
The internet has brought incredible advances for business but has also exposed risks such as:
• Business interruptions
• Data breaches
• Fraud and theft
Many organisations are mitigating their risk with cyber security insurance. Cyber crime and the major costs involved are major priorities as Australia continues to be a large target for international cyber crime.
With a high technology adoption rate and electronic payment preference, Australia is a prime target for cyber thieves.
FIRST-PARTY COVER COMMONLY INCLUDES:
Business Interruption ✔
This section covers any loss of income and related expenses which may be required to continue trading as usual following a data breach or cyber attack.
Blackmail & extortion ✔
Protection against ransom costs is a common area of cover. Some criminals gain access to sensitive information and often demand a ransom be paid while threatening to release the information or permanently delete the important data.
Theft & fraud ✔
Cover for the loss or destruction of data because of a cyber attack or data breach.
Forensic investigation and recovery ✔
Following a cyber attack or data breach your business may have to pay for legal and forensic investigation costs to determine the level of exposure. Cyber liability insurance covers these cost to investigate and replace or restore lost data.
Incident response and public relations✔
After an attack or breach, crisis management and public relations expenses may be needed immediately to ensure the future of the business. Notifying the public after a breach and handling the ongoing advertising campaign can be an expensive exercise.
THIRD-PARTY COVER COMMONLY INCLUDES:
Cyber insurance covers the cost involved in notifying your customers or clients of a data breach.
Credit and fraud monitoring✔
Following a data breach, credit and fraud monitoring services are often provided for affected customers. These costs will be covered under a cyber liability insurance policy.
Regulatory fines & penalties✔
Policies cover fines, penalties and investigations due to a data breach which results in a regulatory claim.
Australia has passed a Mandatory Data Breach Notification Law which will require businesses to report any data breaches to those affected and the Australian government which may result in fines & penalties.
Clients and customers could claim that their reputation, intellectual property, finances or physical property were damaged by your failure to secure their data. Cyber insurance covers the expenses which result if your business becomes liable to pay damages.
This section offers cover for media liability such as unauthorised use of trademarked or copyrighted material used by your business.
Cyber crime is a major risk for Australian businesses.
Take a look at some of the stats from the Australian Government.
Naga Risk Solutions Pty Ltd T/as Cyber Insurance Australia ABN 59 378 032 992. CAR 1250594
Authorised Representative for National Advisor Services Pty Ltd t/as Community Broker Network (CBN) ABN 60 096 916 184 | AFSL 233750
1300 462 293
Available 8:30am - 5:00pm
PO Box 1677, Milton LPO
Brisbane, QLD 4064
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