Cyber Cover Insurance

What is Cyber Cover?

Cyber Cover offers assistance if a cyber event affects your business or a clients ability to operate.

There are many different Cyber Cover insurance policies in the market. They would typically cover two types of party:

• You (aka First Party Cover) – First-party Cyber Cover gives you access to specialists and financial support to get your business, and its network/systems back up and running as soon as possible following a cyber event, including the cost of investigating a cybercrime, recovering data lost in a security breach and the restoration of computer systems, loss of income incurred by a business shutdown, reputation management, extortion payments demanded by hackers, and notification costs, in the case you are required to notify third parties affected.
• Others affected by a Cyber Event (aka. Third-party cover) – Third-party cover provides financial support for cyber event claims made against you, where a clients data, network or systems have suffered a breach.

The risks of cyber events are evolving rapidly, with new risks emerging as technology advances and new regulations are put in place.

Unfortunately, even some of the most tech-savvy individuals can fall victim to cyber events. While there are numerous types of criminal activities occurring online, there are a few common cyber events to be aware of:

• Ransomware – Ransomware designed to block access to your computer system until a sum of money is paid.
• Data breach – A Data Breach where sensitive data is copied, viewed, or stolen from your computer system.
• Social Engineering – Social Engineering where individuals have been manipulated into divulging confidential or personal information that could be used for fraudulent purposes. An example of this would be a phishing scam where the individual has received what looks like a legitimate invoice and pays it resulting in a misdirection of payment.
• Human error – Human error e.g. losing a laptop with sensitive data on there.

Cyber Cover insurance cover should be held by any business which:

• holds personal data (such as names, addresses, and banking information)
• electronically stores business-critical data
• is reliant on technology to conduct business
• has a website
• has an online bank account
• is subject to a payment card industry (PCI) merchant services agreement

With a Cyber Cover Insurance policy, a business will be covered from both losses sustained by a breach as well as any liability for damages that may be claimed by a third party.

How cyber insurance can help protect your business

• Policy – Provides necessary coverage for risks that are beyond an organisation’s ability to remediate. Also providing training for employees to make them more cyber risk aware
• Service – Provides instant access to expertise from IT forensics to privacy lawyers and reputational experts, helping to get your business operational quickly and reducing the financial impact
• Peace of mind – Demonstrate to internal/external auditors, compliance teams and stakeholders that resources are in place to address cyber business risk