What is cyber protection insurance?
Cyber protection 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 Information Commissioner within 30 days. You’ll also need to notify the people whose information has been affected.
What can it 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. To give you an idea, here’s the type of cover that your policy may include:
|Type of Cover||Potential Benefits|
|First Party Losses|
|Business interruption losses||Covers financial loss you may suffer as a result of a cyber attack.|
|Cyber extortion||The costs of a cyber attack, such as hiring negotiation experts, covering extortion demands and prevention of future threats|
|Electronic data replacement||The 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.|
|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.|