Cyber Insurance
Cyber insurance relates to losses from cyber incidents, such as hacking, ransomware, email compromise and data breaches. It can include costs to your own business and claims from others.
Most businesses rely on email, cloud software and online payments. That reliance means an incident can affect operations quickly, even for a small team.
Who this insurance may suit
- Businesses holding customer or patient records
- Online retailers and businesses taking card payments
- Professional practices handling confidential client files
- Businesses relying on cloud systems to operate
- Organisations covered by the Notifiable Data Breaches scheme
- Small teams without dedicated IT staff
Why this cover may be important
After an incident you may need IT forensics, legal advice and help notifying affected people. These costs can arrive at the same time as lost income.
Organisations covered by the Notifiable Data Breaches scheme may have obligations to assess and report certain breaches. Some cyber policies offer access to response specialists to help with that process.
Potential areas of cover
Cover varies between insurers and policies. Depending on the policy, cover may include:
Incident response
Cover may include access to IT forensic, legal and public relations specialists soon after an incident is reported.
Data restoration
Costs to restore or recreate data and systems may be covered, subject to the policy terms.
Business interruption
Some policies respond to lost income when systems are down because of a cyber event, after a waiting period.
Privacy and network liability
This may respond to claims from third parties whose information was exposed or who were affected by a security failure.
Notification costs
Cover may include costs of notifying affected individuals and providing support such as credit monitoring.
Cyber extortion
Some insurers include response costs for ransomware or extortion threats, with conditions that vary between policies.
Common risks
- Ransomware locking business systems
- Fake invoices or altered bank details in emails
- A data breach exposing customer information
- Phishing emails capturing staff passwords
- A lost or stolen laptop holding unencrypted data
- Outage of a key cloud service
What may not be covered
Every policy has exclusions, limits and conditions. Some common considerations include:
- Insurers commonly ask about security controls such as multi-factor authentication and backups.
- Funds transferred because of social engineering or email fraud may be limited or need a specific extension.
- Prior known incidents, unpatched systems and infrastructure failures may be excluded.
- Waiting periods often apply before business interruption cover begins.
- Fines and penalties are only covered where the law allows and the policy includes them.
Always read the Product Disclosure Statement and policy wording. Your broker can explain how they apply to you.
Why work with Tasman Insurance Group
- We take time to understand your business or circumstances before discussing cover.
- Where applicable, we approach suitable insurers and compare the options available.
- We explain exclusions, limits and excesses in plain English before you decide.
- We help with changes during the year, renewals and claims.
Cyber Insurance FAQs
Is cyber insurance only for large businesses?
No. Smaller businesses can be affected by email fraud, ransomware and data breaches. Policies are available for a range of business sizes.
Does my business package include cyber cover?
Some packages include a limited cyber extension, but many exclude cyber events. A standalone cyber policy may offer broader options.
What should I do first if I have a cyber incident?
If you hold cyber cover, contact the insurer's incident response line as set out in your policy. Acting quickly can help limit damage and keep you within policy conditions.
Will my security set-up affect cover?
Insurers usually ask about controls like multi-factor authentication, backups and patching. Your answers can affect terms and availability. A broker can talk through your situation.
Related insurance solutions
Management Liability Insurance
Cover for directors, officers and the company itself against certain claims and costs relating to the management of the business.
Learn more about Management Liability InsuranceProfessional Indemnity Insurance
Cover that may respond to claims alleging an error, omission or negligence in the advice or services you provide.
Learn more about Professional Indemnity InsuranceBusiness Interruption Insurance
Cover that may help replace lost profit and pay extra costs while your business recovers from an insured event.
Learn more about Business Interruption Insurance
Ready to talk about cyber insurance?
Request a quote or call us. We'll ask about your circumstances and discuss the options available.