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:
- First-Party Cyber Cover
- 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
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.