Understanding Insurance, Part 4: Cyber Liability Insurance
In Part 4 of our Understanding Insurance series we explore how Cyber Liability insurance can protect your business from online threats and attacks.
Most SMEs rely on their data to perform a range of day to day functions. With more and more data stored online, connecting to the internet opens the possibility for hackers to attack. An attack can be anything from a hacked website to theft of sensitive client data, to a ransomware threat.
With an increase in cyber attacks on small business operators, it is worth considering Cyber Liability insurance and how it can protect your business.
What is Cyber Liability insurance?
Cyber Liability Insurance protects your business against the expense and legal costs arising from data breaches which may occur after being hacked or from the theft or loss of client information.
Why do I need to consider Cyber Liability insurance?
A common misconception is that hackers only go after the big fish but when it comes to attacks, companies big and small are a target. Even when you take the right measures to prevent an attack from occurring, hackers are increasingly getting smarter and sneakier when it comes to attacking systems.
Not sure if Cyber Liability insurance will be beneficial to your business? Consider the following:
- How valuable is the data you store? Do you store personal or commercially sensitive information about your clients, suppliers or your own business?
- Do you have a robust IT infrastructure in place?
- Are all your systems up to date with the latest anti-virus protection software?
- Do you have adequate resources and an incident response plan to manage a cyber incident?
To understand if a Cyber Liability policy would be beneficial to your business, ask yourself the following questions:
- How valuable is your data? Do you store personal or commercially sensitive information about your clients, suppliers or your own business?
- How robust is your IT infrastructure? Is it up-to-date with the latest anti-virus protection software?
- Are you and your employees adequately trained on what to be aware of, how to prevent a cyber incident from occurring and recognising when a data breach has occurred?
- Do you have sufficient resources and an incident response plan to manage a cyber incident?
What does Cyber Liability insurance typically cover?
- Investigation and data recovery costs
- Business interruptions costs
- Fines and penalties
- Extortion costs
- PR and crisis management costs
What is typically not covered by Cyber Liability insurance?
- Replacement equipment
- Property damage
- Prior known facts / circumstances (before the policy commenced)
- Intentional acts
Types of Cyber Liability claims
- Website hijacked and defaced
- Computers infected with viruses/malware
- Data held to ransom
- Wrong email attachments
- Lost or stolen devices
Find out more
At BizCover, we don’t believe in messy paperwork or using jargon. We want to make buying business insurance a stress-free process without the hassle. Jump online to experience insurance made easy today.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.