What is Cyber Insurance
Cyber Insurance is a specific type of insurance that provides insurance against the loss caused by malicious cyber activity, commonly called cybercrime. Depending on the breadth of your cyber insurance, some cyber risks maybe covered by your cyber insurance policy, whilst other cyber risks maybe excluded. Whilst cyber insurance won't directly protect you against the cybercrime, it can provide an offset against the material business impact that cybercrime may have on your business.
What is Cyber Insurance?
Cyber Insurance offers an offset (insurance) against the financial, business and operational risks that businesses face from cybercrime activities. A cyber insurance policy is sometimes referred to as cyber risk insurance or cyber liability insurance coverage. In Australia, about 30% of businesses have experienced a cybercrime incident. Within the US, about one-third of businesses currently purchase Cyber Insurance coverage.
So what is cybercrime?
Cybercrime can take many forms and impact businesses differently. The Australian Cybercrime Online Reporting Network (ACORN) notes that some common types of cybercrime include:
- Online scams and fraud
- Identity theft
- Attacks on computer systems
- Illegal or prohibited online content
Cybercrimes are on the rise in Australia, with over six million Australians being victims of cybercrime in 2017, an increase of 13% from 2016. Cyber insurance policies can offer protection against many different cyber risks where a business may be exposed. So ensuring that you understand what your specific individual risks might be and how you can reduce your direct exposure to them is critical. Do standard business packs cover you for cyber insurance? Maybe. Some business packs might provide some coverage for cyber insurance, however, Cyber Insurance Brokers that are specialists in cyber insurance should be consulted to gain specific insight and advice that is tailored to you and your business needs. Many insurance brokers will offer to review your current business insurance policies and explore your possible cyber risks to help you understand if your insurance coverage is adequate. Connect today with an insurance broker who specialises in Cyber Insurance.