Cyber Crime Insurance

Get the right cover

Could this happen to you?

What is Cyber Liability Insurance?

Cyber Liability insurance* is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack. Costs associated with defending a cyber claim are also covered. Examples of the types of risks Cyber Liability insurance can assist with are inadvertent loss or release of customer personal information, cyber crime, cyber extortion/ransomware and business interruption due to a cyber event.

Hackers. These are not just dodgy movie characters but real life people, doing real damage to businesses across the globe, including Australia. If you’re thinking your small business down under is of no interest to these criminals, think again. Every business with an online presence is at risk of a cyber attack and with an attack occurring every 8 minutes now might be time to bite the bullet and get the right cover for your business.ⁱ

In a nutshell, your customer data is sacred. If you don’t protect it properly, your business may be fed to the wolves.

If you’re still not convinced your business may be at risk, here are the cold hard facts about doing business in today’s technically advanced world:

• Cyber crime costs Australian businesses $1 billion annually – yet it remains one of the least insured policy areas.ⁱⁱ
• ‘Unisys Security Index – Australia, 2019’ revealed that 15% of Australians would stop dealing with an organisation if their data was breached.
• In 2021 63% of organisations suffered a Cyber security breach! ⁱⁱⁱ

What does Cyber Liability insurance typically cover?

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

What is typically NOT covered?

• Bodily injury and property damage
• Prior known facts or circumstances Intentional or fraudulent acts
• Damage to computer hardware
• Upgrading of an application, system or network
• Failure or outage of power, utilities, satellites or telecommunication services

Get the cover that is right for you

With the policies available through BizCover you can choose coverage amounts between $250,000 to $2 million

Sit back for a minute and think about this….it might be the first time you have considered the impact on your business if your website was taken offline? Could your business survive the reputation damage, and the losses associated with a data breach?

Just consider the following:

• The effect to your business if a hacker blocked access to all your files and demanded a hefty ransom for release?
• Could you sustain a complete interruption to your business operations due to a cyber attack?
• Is it possible that you or your staff could fall victim to a fraudulent email releasing personal information or directing funds?
• The effect of a data breach to your business?
• The amount and personal nature of customer data you store and the security arrangements in place to protect that data

Who benefits from this type of Insurance:

• Any business that trades via a website or online platform
• Any business that uses email
• Any business that deals with customer data
• Retailers who use EFTPOS machines
• Companies reliant on IT systems to conduct business
• Example occupations:  Accountants, Consultants, Estate Agents, Retailers, Hospitality outlets, Manufacturers etc

Cyber Security For Small Businesses

With more and more cyber criminals targeting SMEs, how can small businesses protect themselves?

Frequently Asked Questions (FAQs)

^[i] Australian Cyber Security Centre, September 2021, ACSC Annual Cyber Threat Report, July 2020 to June 2021, https://www.cyber.gov.au/acsc/view-all-content/reports-and-statistics/acsc-annual-cyber-threat-report-july-2020-june-2021
[ii]Australian Criminal Intelligence Commision, Cybercrime, 2019, https://www.acic.gov.au/about-crime/organised-crime-groups/cybercrime
[iii] Digital Nation, 29 April 2022, https://www.digitalnationaus.com.au – “63-percent-of-organisations-suffered-a-cybersecurity-breach-in-2021.”
[iv] Dual Australia, Cyber Claims Examples, Accessed 2019
^[v] Dual Australia, Cyber Claims Examples, Accessed 2022