The internet has changed the world we live in. “Cyberspace” allows people and businesses to communicate, connect and develop in increasingly sophisticated ways.
While the internet has made it faster and easier to communicate, this rapidly expanding technology is not without risk. The number and severity of data breaches is rapidly rising, so it is essential for both businesses and their customers to be protected by a cyber insurance policy against the cyber liabilities that they face. Recent legislation changes in Australia now means that it is more important than ever to consider Cyber Insurance.
Even if you do not have a website, your business is exposed to cyber risk as hackers can target other technology that you may rely on. This can include In-house Server including Email Server; Accounting Software such as MYOB, Point of Sale systems or Quoting Software or any software that isn’t backed up externally.
First Party Cover
First Party Cyber Insurance coverage protects and reimburses a business in the event of a data breach and the fallout from an intrusion.
One of the main areas that First Party Cyber Insurance covers is the period directly after an attack. For many small to medium businesses, the days, weeks or even months after an attack can be difficult to recover from.
First Party Cyber Insurance helps with the business’ revenue in a similar way that a business interruption policy works for a fire damage claim. Further to this, it can also assist with:
- IT Forensic Costs
- Public Relation Expenses
- Retrieval of Data Costs from a Damaged System
- Cyber Extortion Expenses (including Ransom Payments)
- Credit Monitoring Costs
Third Party Cover
Third Party Cyber Insurance coverage protects the customers of a business when a data breach occurs. When a data breach does occur, one of the largest problems a business faces is from their own customers.
Customers put their trust in a business to keep their details safe. When this trust is broken, even through no fault of the business, there will be a massive fallout. Third Party Cyber Insurance focuses on the issues that arise from litigation and legal expenses.
This can include costs of defending claims arising from:
- Unintentional Breach of Privacy
- Breach of Confidential Information including Employees
- Intellectual Property Rights infringement
- Unintentional disclosure of Personal or Financial Information