What does cyber insurance NOT cover

Anna Chatburn
Anna Chatburn
Jan 04, 2019 02:31 PM 2 Answers Cyber Insurance
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I'm looking to get cyber insurance for my small consulting firm and wondering what cyber insurance generally does NOT cover, so I can make sure I'm covering all bases with other types of insurance.
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Anna Chatburn
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clare1352
Feb 05, 2019
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Hi Anna,

This is difficult to answer as cyber insurance is a specific product and there are many things that cyber insurance does not cover. For example:

Property Insurance
Personal Accident
Theft of physical items
Loss of income due to certain events
Public Liability insurance
Workers Compensation

I am happy to discuss your specific needs if you want to call me

Cheers,
Clare

0476 766 100

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Brett Thiedeman
Jan 31, 2019
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What does a cyber insurance policy usually cover?

Matt Maitland
Matt Maitland
Apr 23, 2018 02:40 PM 1 Answers Cyber Insurance
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Cyber insurance seems to cover all sorts of different things. What areas do cyber insurance policies typically cover and how do I know that these are sufficient for our cyber needs? Cyber insurance seems like a new area and one that i've only recently started to think about.
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John
Dec 05, 2018
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DISCLAIMER: This is not advice.  Please see a qualified professional to discuss your situation.  This is solely my opinion and not of the companies I am associated with.
Cyber insurance protects your business against the damages of online crime and interruption.

Cyber insurance can cover:

  • legal cost,
  • notification costs,
  • public relations cost,
  • compensation to third parties you are liable to pay,
  • lost income while your systems are down,
  • data recovery,
  • ransom and extortion payments,
  • social engineering fraud, and
  • multimedia liability including social media activities.

Some figures to consider:

  • 36% of data breaches are due to human error (OAIC)
  • $1.99 million is the average cost of a data breach in Australia (Ponemon 2018)
  • $108 per affected record.  Higher in certain industries. (Ponemon 2018)
  • On average 185 days to identify a breach and 75 days to contain it (Ponemon 2018)

There is no definitive way to to determine how much cover you will need because I don’t know your business.  It’s important to look at what events are covered as much as the limits provided.

So if you use $108 per affected record as a guide, and you had 1000 individual records, you can estimate you would need as a minimum $108,000 of cover limit.

Make sure your broker understands IT systems and information risks before recommending a solution. This product is relatively new and generally misunderstood.

Contact us on 1300 3 COVER or visit www.indagard.com.au

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Cyber Insurance – how can I know what needs to be covered?

Andy Jamieson
Apr 18, 2018 04:17 PM 1 Answers Cyber Insurance
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I'm running a business and am interested in Cyber insurance. But feel like I don't understand it all. Can you provide some guidance on what a good cyber insurance policy would usually cover? Why are cyber policies additional policies and not an inclusion?
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John
Dec 05, 2018
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DISCLAIMER: This is not advice.  Please discuss your situation with a qualified professional.  This is solely my opinion and not of the companies I am associated with.
A “good” cyber insurance policy can cover:

  • legal cost,
  • notification costs,
  • crisis response costs,
  • public relations cost,
  • compensation to third parties you are liable to pay,
  • lost income while your systems are down,
  • data recovery,
  • ransom payments,
  • social engineering fraud, and
  • multimedia liability including social media activities.

What options should be included depends on your activities.

For example, I may agree with your decision to remove multimedia liability and wear that risk if your insistent that you don’t use social media or multimedia.

Additional policies (i.e standalone) provides a more comprehensive level of cover as I listed above.

Some professional indemnity insurance policies include a limited cyber cover, at no cost.  But be sure to understand what you’re getting.  Free cover may leave you with a false sense of security to other online risks that aren’t covered.

If you want a broker that understands IT systems, online threats and insurance, call us on 1300 3 COVER or visit www.indagard.com.au

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