CYBER INSURANCE
As a business owner, you work diligently to protect your assets. Your business’ insurance cover typically looks after the safety and security of your company, your belongings, and your income. However, it would be in your best interest if you considered the wealth you store in your databases and your reliance on technology to keep things running smoothly. To safeguard these assets, you need to invest in cyber insurance.
What is Cyber Insurance?
Cyber insurance policies offer protection against losses resulting from online criminal activities.
The Australian Federal Police identifies various illegal activities as cybercrimes, such as:
-computer invasions
-fraudulent acquisition or trading of personal financial information, and the creation distribution of malicious software like malware, viruses, and ransomware
Additionally, unauthorized damage to electronic communications, including attacks that deny users' service, and unauthorized destruction or modification of data are also considered cybercrimes.
Do I Need Cyber Insurance?
It is highly recommended to protect your company with cyber insurance due to the increasing number of cyber-attacks on Australian infrastructure, organizations, and businesses.
According to the Annual Cyber Threat Report by the Australian Cyber Security Centre (ACSC cybercrime is one of the most significant threats faced by Australians, with reports of cybercrime occurring approximately every 10 minutes. The ACSC has also highlighted the devastating impact that cybercrime can have on businesses and individuals.
In 2019, cybercrime caused Australians to lose around $634 million, according to Scamwatch.
A Breakdown of Costs Associated With Cyber Attacks
If your business is the victim of a cybercrime, you can expect costs to come from the following sources:
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Crisis Management
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Customer Notification
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Extortion Costs
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It Systems
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Lawsuits
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Regulatory Commission Fines
You must also think about the price you will pay in your company’s reputation, employee morale, and customer loyalty after experiencing a cyber attack.
What Will a Cyber Insurance Policy Cover?
A cybercrime protection policy will cover first-party losses that hit you and your company directly and third-party losses. Third-party losses typically come in the forms of claims brought against you by those affected by your security breach.
What Kind of Crimes Should My Cyber Insurance Policy Cover?
While threats continue to grow and evolve as cybercriminals look for new ways to commit the crimes, here are several risks you should look for in your cyber insurance policy.
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Hackers are adept at getting around passwords, encryption, and other kinds of online defences. This leaves you and your customers vulnerable, and you risk losing:
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Employee information
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Personal information
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Confidential client or product information
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Other information held by Internet Service Providers
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These losses leave you open to legal action from wronged parties as well. Most policies will cover the cost of litigation, but be sure you check with your insurance professional to find out if you have cover for this.
What Do Cyber Insurance Policies Usually Exclude?
While it is true that every insurance policy has unique terms, generally, a cybercrime insurance policy will exclude the following:
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Potential Losses: Most policies will not pay you for losses you expect to happen as a result of the cyberattack
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Loss of Intellectual Property: A loss of this nature is difficult to underwrite. As a result, the majority of cyber insurance will focus on you, your company, and your clients
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Improving Your Systems: A cyberattack exposes vulnerabilities in your security. Generally, businesses will upgrade systems and offer enhanced training for employees. While these are useful and recommended activities, the majority of policies will not pay for these improvements.
With so many potential threats to businesses, we here at Grace Insurance strongly suggest that all companies find cyber insurance policies to help protect themselves and their clients from a variety of damage. Do not make the mistake of thinking cyberthreats and attacks only happen to large corporations and could not happen to your company. Plan ahead and contact Grace Insurance to speak with a professional to arrange your protection.
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We can help protect your assets, whether personal or business. Hippo Insurance are the experts and can give you the peace of mind needed.
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