Cyber Liability Insurance

Cyber liability insurance is a type of business insurance which protects your business against both the legal costs and expenses related to cybercrime incidents. Your coverage may generally include cover for expenses and restoration costs relating to the following:

• Data breaches, including theft or loss of client information
• Network security breaches
• Business interruption costs
• Forensic investigation into the cause or scope of a breach
• Data recovery costs
• Cyber extortion
• Crisis management costs (to protect or mitigate damage to your businesses reputation resulting from a cyber event)
• Loss and legal costs, including fines and penalties resulting from a third party claim for data or network security breach against your company 

Businesses with an online presence is at risk of a cyberattack. You may wish to consider Cyber Liability insurance if you fit into any of the following categories:

• Businesses that trades via a website or online platform.
• Businesses that use email.
• Businesses that deals with customer data.
• Retailers who use EFTPOS machines.
• Companies reliant on IT systems to conduct business.

Cyber Liability insurance is designed to help protect you from claims made against you and support your profitability in the event of a cyber breach or attack. It does not offer the same protection against malicious cyberattacks as cybersecurity for small businesses. However, it can be considered a key part of a cyber risk mitigation plan, and can help your business remain operational and profitable in the event of a breach. 

A single cyber incident can cost a small business approximately $49,600. However, the fallout from a cyberattack is not just financial. It may also cause reputational damage to a business as well. The Office of the Australian Information Commissioner found that 47% of people surveyed said they would stop using a service if their data was involved in a breach. Many Australians place a high level of importance on their privacy when choosing a product or service, with 70% saying it is extremely or very important. 

If you are a small business that uses smart devices or the the internet to conduct business, then you may wish to consider Cyber Liability insurance.

Cyber Liability insurance is not a legally mandatory form of insurance in any industry. However, if you are a contractor, your employer may wish to know what kind of insurance policies you hold before they agree to work with you.