What is Cyber Insurance?

What is Cyber Insurance?

Gaining unauthorized access to data has become seemingly unavoidable. The worldwide interconnected digital technology better known as "Cyberspace" enables businesses and people to interact, converse and connect in a considerable number of ways. While these forms of communication have gradually increased and have become faster, the cyberspace is not without risks.

Cyber insurance is designed to protect businesses and their customers against cyber liabilities that they encounter. Cyber insurance reduces risk exposures by indemnifying the costs included to recover from any cyber-related event.  Some of these risks can be transferred by cyber risk insurance to the insurance market and will allow the business to financially survive in the event of a cybersecurity breach. Cyber Insurance fills the gap between traditional insurance policies and the modern world.

Cyber Insurance Cover for your Business

Cyber Insurance is not only a necessity for big online businesses holding vast amounts of personal data but also small-scale website owners who can have similar legal responsibilities. Many Australian companies are obligated contractually to acquire cyber insurance to protect against third-party costs. Almost all businesses today are dependent on their crucial data, and face possible losses through remuneration, fees, or business interruption should their data go to the public domain. Any business operating in today's technology risks viable exposure from external and internal emails; websites giving out company information, products and services; as well as the increased risk of internet commerce also known as "e-commerce." Now in Australia, recent changes in legislation mean that it is more significant than ever to think about getting a cyber insurance policy.
Cyber risk insurance generally has two primary components:
  1. First-Party Cyber Cover
  2. Third-Party Cyber Cover
First Party Cyber Insurance coverage secures and compensates a business in the event of a breach in data and the adverse effects of an intrusion.  It covers top priority response costs. First Party Cyber Insurance coverage can also assist with the following:
  • IT Forensic Costs
  • Public Relation Expenses
  • Retrieval of Data Costs from a Damaged System
  • Cyber Extortion Expenses
  • Cyber Insurance Experts
  • Hardware & Software
  • Business interruption from the cyber attack
Third Party Cyber Insurance coverage safeguards the customers of a business in the event of a data breach. When a breach in data does occur, one of the massive problems businesses face are from their own customers. Customers entrust their data to businesses to keep them safe. When businesses break this trust even when it's not their fault, a huge fallout is expected. Third Party Cyber Insurance focuses on issues arising from litigation and lawful expenses. This can include the costs of defending claims that arise from: Unintentional Privacy Breach Confidential Information Breach including Employees Infringement of Intellectual Property Rights Unintentional disclosure of Financial or Personal Information

Ask yourself:

If your system, online access, emails or operating system was attacked and shut down today could you still trade and pay the costs to get back on your feet?

If the answer is NO, you need to insure for that!

For more details regarding Cyber Insurance and how it can protect your business online and offline contact us to arrange a schedule to talk to one of our experts.

Protect your business with Cyber Insurance

ARMA Insurance Brokers are dedicated licensed brokers who will help make your decisions easier and will help you choose the most comprehensive cyber insurance policy for your business.  As long as you utilize the internet, the probability of your data getting hacked gets gradually higher. It is only a matter of time.

Get that Cyber Insurance policy now.

Contact Amanda Morris.
 

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Amanda Morris, Arma Insurance Brokers Hunter Valley, ABN : 60096916184, AFSL : 233750 , AR Number: 321761, CAR Number: 321762

Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Amanda Morris.

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