CYBER INSURANCE
What is Cyber insurance?
Cyber insurance is a relatively new form of insurance which has been developed to protect your business against the costs associated with suffering a cyber event, which has been defined by the CSIRO as,
“Any identified effort directed towards access to, infiltration of, manipulation of, or impairment to the integrity, confidentiality, security or availability of data. The possibility of a malicious attempt to damage or disrupt a computer network or system”.
Who needs Cyber insurance?
In an ever increasing digital world, there is a strong argument that all businesses need Cyber insurance, however this need increased substantially if your business:
- Collects and retains sensitive personal information and/or third-party payment details
- Hosts and maintains its own servers and IT systems
As such, Cyber insurance is particularly relevant to the following professions and industries:
- Financial Services – accounting, financial planning, mortgage & insurance broking
- Healthcare – medical practitioners of all descriptions, clinics, hospitals
Regardless of how good you think your company’s IT systems are, there is no 100% guaranteed way to protect your data. What’s more, a data breach will not only affect your business, it can negatively impact your clients and customers.
What does Cyber insurance cover?
In the event of a cyber event occurring, Cyber insurance will provide coverage for:
- Response costs
These include cyber extortion payments, data restoration & securing costs, virus extraction and the costs incurred in notifying those customers and clients who have been affected. - Losses incurred by your business
Any downturn in revenue due to loss of reputation and goodwill. - Claims
Any demands for compensation or other legal remedy caused by or in connection to the cyber event.
How much Cyber insurance is enough?
This will ultimately depend on a range of factors which include the nature of your business, the type and volume of data it has access to and existing IT arrangements. With this in mind however, we recommend our clients have a minimum of $1 million in cover.
To find out more about Cyber insurance and how it can protect your business in an ever increasing digital world, please contact us via the form below.
