Cyber Risks Insurance

Cyber Risk Insurance – What is it?

This is basically insurance for companies that rely on technology.  We already know that critical data is at risk from viruses, hackers, malicious employees, and accidental damage.

Check out this map that shows you the Cyber Attacks going on around the world by clicking here

We have all seen the newspaper articles and news stories. So many major companies have been hacked into recently but even more have had attempts to them. Companies such as Amazon, Sony and even the NBN here in Australia have been accessed. Google says they have more than 1,000 attempts per day.

But these companies have the financial strength and resources to prevent or resolves these matters even though not all of them can. As a small to medium business, you can either:

  • Manage the risk through constant monitoring and maintenance by your IT Consultant
  • Transfer the risk to insurers willing to carry that exposure

 Our recommendation is to do both. Prevention is always better than cure but should something still go wrong have something to back you up for any financial reprucussions. Information is a vital asset – make sure it is protected.

 Why do you need it?

What can occur if “Hackers” happen to be successful, is that confidential data can be lost or used inappropriately. Privacy can be breached. Financial Records can be accessed, Bank Accounts and Credit cards accessed. Companies have a duty of care to protect their client’s records. Data is more portable than ever before, the equivalent of ten filing cabinets can now fit on a device smaller than a mobile phone. It can be quickly transferred and stored by Hackers and inappropriately used or sold to others to use.

Then also systems can fail, businesses cease to trade. Commercial property insurance protects your physical computers, but not the data stored on them. Business interruption cover will not respond to outages caused by computer viruses or hackers. General liability policies will not cover claims for intellectual property rights infringement, defamation, or privacy violations.

 What does it cover?

We can obtain a policy for you that provides broad cover for a wide variety of risks resulting from the use of technology within business. Features include:

  • Cover for your civil liability resulting from data breaches
  • Contractual fines coverage, including credit card company and PCI fines, arising from privacy breaches
  • Cover for your own costs to notify individuals in the event of a privacy breach where required by law and the cost of actions taken to mitigate a larger liability claim
  • System repair and restoration cover in the event of accidental damage to data, including a computer virus or hack attack
  • Cover for your lost revenue arising from system downtime after a computer virus or hack attack
  • Electronic fraud coverage
  • Cover for your liability arising from a breach of statutory ecommerce duties
  • Media liability cover for electronic content, including intellectual property rights infringement and defamation
  • Give you cover you for claims made anywhere in the world as standard
  • An experienced claims panel will react quickly and locally, from privacy breach notification to electronic fraud investigation
  • If your brand is at risk, they will hire PR consultants to manage the impact.

Remember that your traditional business insurance will not provide cover for these risks.

 We can obtain a quote for you to cover these. All you need to do is simply complete the relevant proposal form and return it to us. We will then seek terms on your behalf.

 Call CPR – Experts who will save you. 

Managing Cyber Risks

Cyber Risk Whitepaper from Chartis

Cyber Risks gaining more attention

Cyber Risk Insurance expected to Boom

Cyber Liability Journal March 2012

Public Utilities Company in USA buys Cyber Risks Insurance

Latest News

Above-average cyclone season looms

As reported by insurancenews.com.au

Insurers should brace for an above-average cyclone season due to weakening La Nina conditions in the Pacific Ocean and warmer than average sea temperatures to the north and east, according to the Bureau of Meteorology.

The cyclone season begins next month and ends in April.

The bureau says Australia has a 67% chance of an above-average season, while the west has a 59% chance, the northwest 63%, the north 56% and the east 58%.

In neutral years the first tropical cyclone to make landfall typically occurs in late December, while in La Nina years it usually hits in the first week of December, the bureau says.

Insurance Council of Australia spokesman Campbell Fuller says even an average cyclone season – consisting of 11 events, four of which make landfall – can be devastating.

“An above-average year could bring many more than that, and each one has the potential to cause catastrophic damage if it crosses the coast in a heavily populated area,” he said.

“Only one cyclone made landfall last season, and that was in a sparsely populated part of WA’s Pilbara. There’s no guarantee Australia will be so fortunate this summer.”

Tropical Cyclone Marcia cost insurers $544 million from more than 37,000 claims when it struck Rockhampton in February last year. In 2011 Cyclone Yasi cost insurers $1.4 billion.

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Beware the escape clause in Motor policies

Cheap motor insurance can have some tough exclusions The Policy Comparison team at LMI have highlighted some new exclusions have been introduced by some of the “Cheapy” direct insurers. Previously Motor Insurance wordings did not have an exclusion for “reckless acts” but this has now changed.  Reckless driving is often defined as a mental state in which the driver displays a wanton disregard for the rules of the road; the driver misjudges common driving procedures, often causing accidents and other damages. The legal dictionary defines reckless driving as operation of an automobile in a dangerous manner under the circumstances, including speeding (or going too fast forthe conditions, even though within the posted speed limit), driving after drinking (but not drunk), having too many passengers inthe car, cutting in and out of traffic, failing to yield to other vehicles, and other negligent acts.

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