Do I Need Cyber Insurance?
As more Australian companies fall prone to cyber attacks, we have covered the measures for cyber security but if all else fails is there a contingency plan, this is where Cyber Insurance is a must.
What is Cyber Insurance?
Cyber insurance is an insurance policy that can help your business recover financially from cyber incidents such as data breaches, malware attacks, ransomware attacks, and more. Complying with your policy requirements increases your chances of getting reimbursed for audits, forensics, compliance fines, lawsuits, and even extortion.
Cyber Insurance can offer protection and financial support to a business or company that has fallen victim to cybercrime, as a first-party cover and also a third-party cover (third-party associates who have fallen victim to a cybercrime). Each business or company offering cyber insurance vary from one to another but they do contain three core categories; ‘Cyber Liability’, ‘Cyber extortion/ransomware’, and the ‘Cyber Theft’.
Cyber Liability
Data breaches and malicious software attacks can incur high costs for your business. Cyber liability insurance can protect your business against these costs. It covers all expenses related to third parties such as customer notification, credit monitoring, legal fees, fines, and other costs. Some providers even cover legal fees and expenses associated with potential damage to partners, customers, or employees as a part of third-party liability
Cyber extortion/ransomware
A cyberattack or threat of an attack associated with a demand for money or another response in exchange for preventing or resolving the assault is cyber extortion. Gaining access to a company’s networks and exploiting vulnerabilities or valuable targets are the goals of cyber extortion attacks. This type of insurance typically covers expenses for ransom, negotiations, forensics, system rebuilding, and business interruption.
Cyber Theft
Cyber theft insurance protects your business from liability if sensitive customer information, such as health data, social security numbers, credit card numbers, account numbers, and driver’s license numbers, is compromised. This type of cyber insurance provides first-party coverage that financially protects your company from embezzlement, scams, payroll redirection, and gift card scams. You don’t have to worry about lost revenue caused by operational outages as long as you have first-party coverage and meet your policy requirements.
Don’t fall for cyber insurance myths
There are many myths and misconceptions surrounding cyber insurance even though the value of cyber insurance is being recognised more and more. Knowing the real facts regarding cyber insurance is crucial if you want to maximise your chances of being accepted for coverage and receiving a pay-out in the event of a breach.
Check out our article below about myths and truths behind them cyber insurance:
Why Cyber Insurance?
For any organisation covered by the Privacy Act 1988, it is required by law to report any data breach within or related to the organisation as required by the NDB scheme (Notifiable Data Breaches), if an organisation suffers from a cybercrime or data breach…. heavy fines do apply for not following Australia’s cyber security regulations, BUT WORRY NOT!!
Navigating the world of cyber insurance can be difficult with limited resources. While partnering with an IT service provider doesn’t ensure coverage or payment in the event of an incident, they can implement best-in-class cybersecurity solutions and help you adhere to your policy’s requirements, maximising your chances of qualifying for coverage and payout in the event of a breach.
Contact us for a no-obligation consultation today to find out how we can help.
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This is Part of our Cyber Security awareness educational campaign. Through this training, you will learn awareness and key principles, and best practices to protect yourself, your organisation, and the public from cyber attackers. You will also be equipped with the knowledge to identify potential threats and take action before any damage can occur.