Cyber Liability Insurance - Australia
Why do I need Cyber liability insurance?
Data breaches have become all too common and appear in the press regularly. In the past few years, eBay, Facebook, Linked In and Adobe have all been victims of data hacking whereby millions of users personal data have been accessed. One of the most recently publicised “hacks” was the Ashley and Maddison website enraging users as potential exposures could affect existing personal family relationships. Besides hacks to access data, hackers can infect servers with malicious software, ie: software that causes some kind of disruption or malicious behaviour on the server such as Ransomware, which blocks access to data and forces the user to pay a “ransom” to the hacker to unlock and re-access the data. The National Retail federation highlighted that Average (MEAN) days of intrusion to detection of a hack was 188 days.
Your business could suffer a sudden and potentially devastating threat to its viability the moment a cyber-hacker breaches your network security and gains access to your digital assets.
A cyber-breach and the liability claims that typically follow, may be relevant to you if any of the following is true:
• your customer’s personal details and financial information are stored within your network
• you rely on your website to sell products or services and perform relevant transactions
• your website plays a significant 24/7 customer service role
• you rely on your website to manage critical day-to-day operations
The commercial reality is that hacking and cyber extortion create genuine liability exposure to your business.
Key Policy Highlights
Third Party Claims - covers the Insured's liability to third parties from a failure to keep data secure, such as claims for defence costs, investigations, compensation by third parties and fines and penalties from breaching the Privacy Act.
First Party Costs - reimburses the Insured for the costs they would incur to respond to a breach, such as Public Relations Expenses, Credit Monitoring Costs, IT Forensic Costs, and Cyber Extortion Costs (including ransom payments to hackers).
Business Interruption - Provides reimbursement for the Insured's loss of profits resulting from the breach, as well as any additional necessary expenses it may need to incur to continue business as usual.
Types of Loss Covered
This list is not exhaustive, but it will give you a feel for the depth and breadth of cover, as well as create an awareness of the range of risk associated with cyber liability:
- Loss or damage to digital assets: damage to your data and/or software will incur expenses associated with data restoration.
- Third party claims from a failure to keep data secure
- Remediation Costs - reimbursement of the Insured's own costs including credit monitoring, cyber extortion, data restoration, forensic, notification and public relations costs, and legal representation expenses.
- Lost income due to network interruption, service degradation and network failure.
- Compensation claims, investigations, payment of fines, legal and defence costs related to a claim made against you by an aggrieved party.
- Government regulatory fines and awards (where insurable) and defence costs.
- Legal, postal, advertising and other expenses related to customer care, company reputation and restoration of company image due to regulatory action, loss of confidential information
- Defence costs due to the unintentional electronic or print distribution of information that is defamatory, a breach of privacy or an infringement of intellectual property of a third party.
- Business interruption - Reimbursement for lost profits, as well as necessary expenses incurred to maintain operation of the business as a result of the interruption.
For a none binding indicative quote or for further information contact us or call now 03 9557 7400
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