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What is Cyber Insurance? 🤔

May 16, 2018
Views: 1356

Business Insurance 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 may be covered by your cyber insurance policy, whilst other cyber risks may be 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:

Hacking
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.

cyber cyber insurance

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.

All information above has been provided by the author.

Andy Jamieson, ABN 17 613 588 266