Written by Cyber liability is a type of business insurance that can offer you protection against an array of cybercrime. These days, there are many risks to your online data and identity caused by hackers getting through your online defences. According to BizCover, in 2021, 63% of organisations in Australia suffered some sort of cyber security breach.
You can compare cyber liability insurance quotes right here with Savvy so you can get the protection you need in minutes. You'll be able to consider a range of quotes from some of the country’s leading business insurers for policies that can protect you from loss caused by data or online identity theft. Start to feel that peace of mind by comparing free quotes here through Savvy today.
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Why might my business need cyber liability insurance?
Some of the risks you face can include:
- Customer data being stolen (and a ransom demanded for its return)
- A denial-of-service (DoS) attack (where hackers lock you out of your systems and demand a ransom be paid to allow you access again)
- The theft of your social media sites or handles (with the risk of impersonation or public relations damage)
- The hijacking of your key online addresses (so customers are diverted from your sales site to another with a demand for money in order to return your online traffic to you)
- Trade secrets, intellectual property or patent information being stolen
- Sensitive, secret or national security information being accessed by hostile nations
What does cyber liability insurance include and exclude?
Cyber insurance will cover you for the costs associated with recovering from any cyber infiltration, hack or attack. It covers the cost of:
- Data recovery (including the cost of hiring experts to assist you to recover your data)
- Cyber extortion (if you have to pay a ransom or extortion amount to get your website back under your control)
- Crisis management (to decide how best to deal with the attack)
- Media and advertising (if required to communicate to your clients or customers in relation to the attack)
- Legal costs (to defend yourself against any third-party claims or legal fees associated with the attack)
- Fines and penalties which may be imposed by regulatory bodies as a result of hackers getting into your systems
Cyber liability is a very specific type of insurance and doesn’t overlap much with other forms of policy. For instance, business assets insurance can sometimes offer coverage similar to business contents insurance. However, few other forms of insurance offer anything near cyber protection.
The only duplication you may encounter regards cover for legal costs. Cyber protection will cover legal costs to defend yourself against the consequences of a cyber attack and this same cover can sometimes be offered by professional indemnity insurance (for example, if you face a claim from a third party for negligently storing sensitive customer data).
What isn’t included:
- Damage to computer hardware
- System failures due to power outage
- Failure of satellites or telecommunication services
- Upgrading of an application, system or network (if not directly linked to the hacking attack)
- Prior known facts or circumstances
- Intentional or fraudulent acts by the insured, or employees of the insured party
- Bodily injury or property damage
The types of business insurance
More of your questions about cyber liability insurance
Yes – cyber liability is frequently offered as a package deal with other forms of insurance, such as public liability or product liability insurance. Before deciding what insurance you need for your business, compare a range of quotes and list your priorities so you ensure you get all the most important coverage you need in your insurance package.
You can choose the claim limit you’re comfortable with in line with how much of a risk you think you face. Cover starts at $250,000 and goes up to $2 million or more. For example, if you’re a makeup artist and only have basic customer records on your computer, your need for cyber insurance may be lower than if you are a disability worker, and have a great deal of sensitive client medical and financial information on your computer.
The range of businesses that need cyber protection is extensive, as so much of the work we do these days is online or relies on information that is stored on a computer. To determine if you need cyber protection, ask yourself the following questions:
- Do you store personal or commercially sensitive information online at all?
- How IT savvy are you and how robust are the security systems you already have in place at your business?
- Are you and all your staff trained on how to recognise and prevent a cyber incident?
- How important is your data to the core functioning of your business?
- How easily would your business recover if you were to lose that information completely?
There is no one set cost for cyber protection, as it will ultimately depend on the risks you face, the industry you’re in and the amount of cover you require. Other variables, such as the state you live in, the size of your business, and your insurance history, will also feed into the cost of your cyber insurance.
In Australia, the cost of insurance is higher overall in northern states and territories (such as Queensland and the Northern Territory) than in the southern regions of the country.
However, cyber liability insurance is generally affordable, with the cost of this policy comparing very favourably with the cost of professional indemnity insurance, for example.
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Disclaimer:
Savvy is partnered with BizCover Pty Ltd (ABN 68 127 707 975, AFSL 501769) to provide readers with a variety of business insurance policies to compare. Savvy earns a commission from BizCover each time a customer buys a business insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via BizCover.
Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by BizCover or how their business works, you can read their Financial Services Guide.
