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

Ransomware a threat

You sit down at your computer to check your email. It is Christmas time and you are getting notes from many different delivery companies saying that a package was unable to be delivered to your home. Please click on the reply button (link) to advise where or when the parcel can be redelivered.

It looks authentic, you have no reason to believe that it simply advice about collecting yet another parcel in time for Christmas. The company named is well known and reputable. Admittedly the email address looks a little strange. However, you also know there are many new domain names and extensions now, You click on the reply button…

Before you know it, your computer has downloaded a version of “Crypto-locker”. Your first thought is that expensive Anti-Virus software should have picked it up, but they can only pick up viruses they know about. This brand new release of “Crypto-locker has locked up your screen and is demanded $1,000 worth of “Bitcoin”. What the hell is Bitcoin?

The fact is Australian businesses are increasingly at risk of attack by malicious ransomware software. Hackers have moved on from targetting government and banks, and are now going after small targets on a wide scale.

They are setting small amounts because small business works out that it is cheaper to pay the Ransom than hire an IT expert to fix up the problem.

Ransomware is software that infects a user's computer or network, locking access to files until a sum of money is paid. Crypto-locker is an example.

For now, Cyber Risk Insurance is available and if your Insurance Broker or Adviser has not yet discussed this with you, then contact us.

This is a real threat to your business, can affect your income and Brand reputation. Just like other Liability policies, you should not take the risk un-insured because it can wreck a business.

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Above-average cyclone season looms

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.

As reported by insurancenews.com.au

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