Cyber protection insurance at a glance
Author: Nichole Frame at NLT Insurance Brokers
What is cyber protection insurance?
Cyber protection 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.
Who should consider 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 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 customers’ personal information at risk – which could damage your reputation.
Did you know?
There were 177,519 scams reported in 2018 with 9.9% having a financial loss of $107,032,111.
(Scamwatch statistics, Australian Competition & Consumer Commission, 2018)
58% of victims of data breaches are categorized as small businesses.
(Summary Findings, Verizon 2018 Data Breach Investigations Report, 2018)
Among small to medium sized businesses that have experienced a successful infiltration of the corporate network by ransomware, 22% reported that they had to cease business operations immediately (identical to the global average), and 18 percent lost revenue (higher than the global average).
(Second Annual State of Ransomware Report: Survey Results for Australia, Osterman Research, 2017)
Your employee opens an email attachment infected with a ransomware virus. Access to your systems and data are blocked and the virus software informs you that it will remain unavailable unless you pay the ransom amount. Rather than paying the hacker and opening your business up to further extortion attempts, you hire external IT consultants to recover your back-up data and files and upgrade your antivirus software. Over the week it takes to apply these fixes, you have to close your business, causing you to lose revenue. It also affects your reputation with your clients; one of your clients threatens to sue you for the delay which cost them a large amount of money.
A Cyber Protection Insurance policy allows you to recover some of the costs you incur during this incident. Depending on your policy, you may be able to make a claim for losses caused by the interruption to your business, the costs of recovering your data and upgrading your software, and ongoing crisis management expenses.
Contact us today
NLT Insurance Brokers
ABN 13 618 898 641
P +61 478 822 503
Important note – this information is provided to assist you in understanding the terms, implications and common considerations in cyber protection insurance. It does not constitute advice, and is not complete, so please discuss the full details with your insurance broker.
Content and references may not reflect the view of A Country Practice Accountants Group.
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