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

What cost to me after a Cyber attack?

It does very much depend on the type of attack that has been made on your systems or Web site. However, below are examples of some of the areas you will spend money. How much? How long is a piece of string?

Have you budgeted for the following Expenses in managing your Cyber Risk?

Payment of a ransom? (Maybe a cheaper solution to get your system back temporarily)

data recovery and data rebuilding (IT consultants and data recovery contractors),

Loss of reputation on the business (You will need Crisis Managers, Public Relation consultants, Staff communications, clients and other stakeholders, marketing and advertising),

Various Accountants and consultants’ fees needed to measure and prove the loss

Managing the recovery – particularly to mitigate breach of privacy or confidentiality of client information and informing all of them who are affected by a breach how you are dealing with it (mandatory breach reporting requirements)

Lost Sales due to this Business Interruption (particularly when ability to generate online sales has been affected),

additional costs incurred to maintain business operations or mitigate sales losses – hiring a more specialist firm to deal more quickly with being off air

Cover these expenses with a Cyber Risk Insurance policy. Ask us how?

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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…

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