In September 2022, Australian telecommunications giant, Optus was the target of a serious cyber-attack which resulted in the exposure of the personal details of almost 10 million former and current customers.
Optus is now facing penalties as a result of this attack, as well as being potentially liable for the various costs of their affected customers. There could also be substantial financial loss for the company, as some of their customers decide to change telecommunications providers.
This breach is a reminder to all business owners that maintaining a cyber presence will always render an amount of vulnerability for your business.
Cyber protection insurance is a form of cover that aims to protect businesses from the financial impact of a computer network hack or data breach.
At Centrewest Insurance Brokers, we offer cyber insurance that can cover both you and your clients for data and financial losses resulting from a breach or cyber-attack.
What Does Cyber Insurance cover?
- Costs of restoring and recovering electronic data
- Incident response solutions
- Cover for both first-and third-party losses
- Business interruption loss
- Investigation costs
- Ransom payments to third parties
- Any costs associated with defending a legal claim
Here are some common questions we receive from our customer about cyber insurance.
1. Is the cost of cyber insurance really worth it?
The growing need for cyber insurance for almost all businesses has led to an increase of options in the market and premiums becoming more competitive. Another option is to look at the cost of not having cyber protection. If your business does experience a breach, appointing expert IT consultants as well as seeking legal advice can attract high fees. Beyond this, you are also at risk of bearing civil fines and penalties.
2. Do I need cyber insurance if my business doesn’t sell anything online?
The scope of cyber insurance extends beyond transactional websites. Any business whose operations rely on computer systems to function, who store data of clients, vendors, stakeholders and employees and use email to facilitate business activities should consider it.
3. But we have an IT Manager to protect us?
Whilst your IT Manager (whether internal or contracted) will likely take all measures available to protect against cyber threats, this does not mean you are 100% safe against malware, a hack or data breach. Use of a good cyber protection process and software will ensure your premiums stay as low as possible when underwriters are assessing your risk. In the event of a cyber attack where you have an external IT provider, your business is still legally responsible for the compromised data.
4. Am I covered under my General Liability policy?
Cyber insurance is unlikely to be covered under a general business pack policy. Your general policy will likely cover you for legal liability for third party costs in the event something is physically damaged. Data breach/loss would not be classified as physical property and subsequently, cannot be “physically damaged”.
In today’s interconnected world, protecting your business from cyber risks with the right insurance cover is extremely important. If you would like more information, contact our team today on 08 9126 9068.