It’s now increasingly difficult to ignore the threat of Cyber Crime to the day to day operations of your business. Incidents of data theft ranging from the accidental release of customers’ details, to credit card number theft and ‘denial of service’ attacks, which can suspend a company’s operations, are on the increase.
Cyber Liability Insurance provides your business financial protection for the expenses involved in Cyber-attacks, including:
- The costs of business interruption
- Forensic investigation and data recovery
- The crisis management costs involved with restoring your business’s reputation following a cyber attack
- Legal expenses
- Mandatory notification costs
The statistics are concerning with more than 20% of Australian businesses experiencing cyber crime, and 40% of all attacks directed at SME’s. The reality is that Cyber risk is an exposure that no modern business can escape, and the financial impact of system interruption, privacy and cyber crime events are now felt by businesses within all industries, no matter their size.
New Privacy Legislation introduced in February 2018 regarding mandatory breach notifications, and increased publicity around cyber-attacks, has only heightened the Cyber exposures faced by Australian businesses. With the ever increasing complexity of Cyber risk businesses are facing, it is essential to ensure your organisation is on the front foot to responsibly manage data breaches and efficiently deal with incidents and litigation.
Cyber Liability Insurance covers your business against the expense and legal costs associated with data breaches and systems break down, which may occur after being hacked or from the theft or from loss of client information.
If you have any questions or would like assistance in assessing your organisations Cyber Liability needs please be sure to contact one of our Cyber Risk experts.
Do I need Cyber Liability Insurance?
Does Cyber risk pose a significant risk to your business? Consider these real claims faced by Australian businesses:
- Real estate agency with 6 staff and $8 million turnover.
- The real estate agency had a Ransomware virus enter their computer system where the hacker demanded a payment of US$500 to be made.
- The business was locked out of their system and all of their digital files were inaccessible.
- The business was unable to function normally for 7 days.
- $7,440 to cover the cost of restoring the system and files, payment of the ransom, as well as lost man hours.
- Catering company with 7 staff and a $1 million turnover.
- An email was sent to the insured's main email address (found on their website) which contained a virus.
- An employee opened the offending email resulting in a malware virus spreading through their network and a ransom being demanded.
- All the business’s servers were affected and they were unable to use their payroll system for 2 weeks having to resort to manual processes.
- The business’s IT provider identified the issue and had to install new software.
- A technology consultant was appointed to work with the business’s IT provider in the remediation plan in response to the attack.
- $15,000 in IT expenses to install new software and lost revenue.
- Engineering firm with 20 staff inc. 3 admin and a $18 million turnover.
- The firm was infected with a Ransomware virus causing the server to become totally encrypted and inoperable.
- A ransom was demanded for the equivalent of $10,000 in Bitcoin.
- The firm decided to pay the ransom as it was discovered that there was no viable back-up of their data to restore.
- Remote logins were not possible.
- Once the ransom had been paid, the firm was provided with a decryption code which restored their system.
- $18,650 in IT expenses to restore the system from scratch.
- Family owned food and beverage sales & distribution company, with 15 staff and a $2 million turnover.
- A CrytoLocker virus infected the business’s network encrypting their files and forcing them to take their computers offline.
- A second virus was also detected, requiring their server to be rebooted.
- Resulted in a critical network outage with the sales team unable to send any orders for 2 days.
- $3,470 in IT expenses and lost revenue.