Cyber Insurance is a relatively new form of cover. It’s designed to help protect your business from the financial impact of computer hacking or a data breach.
Why do I need it?
If your business has a website or electronic records, you’re vulnerable to cyber hackers. In fact, it’s likely that your business will suffer from a cyber attack at some stage.
A cyber attack could cost your business more than money. It could also threaten your intellectual property and put your customer’s personal information at risk – which could damage your reputation.
If you see it, report it!
In February 2017, the Australian government passed the Privacy Amendment (Notifiable Data Breaches) Bill 2016 – setting up a mandatory nationwide data breach notification scheme. This means if you spot a security breach which may cause unauthorised access or disclosure of personal information, you’re legally required to report it to the Office of the Australian Commissioner within 30 days. You’ll also need to notify the people whose information has been affected.
What can it cover?
Cyber Insurance policies vary in the benefits they provide, but may include:
What usually isn’t covered?
Exclusions and the excess you need to pay can vary greatly depending on your insurer. Policies generally won’t include cover for:
- Damage to computer hardware
- Criminal actions committed by you or your business
- A cyber attack based on facts of which you were aware
- Criminals using the internet to steal money from you
Full details and other exclusions will be outlined before any cover is finalised for you.