Why do I need Cyber Insurance Cover?
Any person or business with an internet connection is at risk from a cyber-attack. This can have a crippling financial impact on businesses and their ability to continue to operate. The facts are scary – more than 20 percent of Australian businesses experiencing cybercrime, and 40 percent of all attacks are directed at SME’s. Your business is more likely to experience theft or financial loss as a result of Cyber Crime, than your physical assets being stolen. Every astute business owner insurers their business against insured perils such as fire, storm, malicious damage and theft, so ensuring your business is protected from hackers should also be a top priority.
What does Cyber Insurance cover?
Cyber Insurance is broken up into three key components;
- Third Party Claims – covers the Insured’s liability to third parties from a failure to keep data secure, such as claims for compensation by third parties, investigations, defence costs and fines and penalties from breaching the Privacy Act
- First Party Costs – reimburses the Insured for the costs they would incur to respond to a breach, such as IT Forensic Costs, Credit Monitoring Costs, Public Relations Expenses and Cyber Extortion Costs (including ransom payments to hackers).
- Business Interruption – this section provides reimbursement for the Insured’s loss of profits resulting from the breach, as well as any additional necessary expenses it may need to incur to continue business as usual.
How much does Cyber Insurance cost?
Cyber policies start from $1,000 a year. Premiums vary based on a number of factors including; the type of business you have, level of cover selected and turnover of your business. For a free quotation on cyber insurance please contact one of our brokers. Quotations can usually be turned around within 24 hours.
Did you know?
- Australia is the fifth most targeted country for cyber-attacks globally
- 75 percent of cyber-attacks come from human error
- The average cost of cyber-incidents in Australia is $276,232
For more information on how having cyber insurance can protect your businesses please contact our office.