What cyber insurance covers in Australia is financial loss and liability from cyber attacks and data breaches, split into first party cover for your own business and third party cover for claims against you. First party covers business interruption loss of income if systems down due to ransomware, typically 3 to 12 months lost profit, data recovery and restoration costs to recover data from backups, cyber extortion costs including ransom negotiation and ransom payment up to limit, forensic investigation costs by IT experts to determine cause, legal advice costs, notification costs to notify affected customers under Notifiable Data Breaches scheme, which can cost $50K to $200K, credit monitoring for customers for 12 months, and crisis public relations costs. Third party covers your legal liability if third party sues you because their data was breached from your systems, including defence costs, settlements, and regulatory fines where insurable, plus PCI fines if credit card data breached. For example, a small retail shop with $1M turnover and $500K cyber cover would be covered for IT forensics $15K, ransom $50K, business interruption $30K, notification $20K, and legal $10K after ransomware. Policies from QBE, Chubb, Zurich, Allianz and AIG offer limits from $100K to $50M with 24/7 incident response hotline including lawyers, IT forensics and negotiators. It does not cover physical damage, known unpatched vulnerabilities, or war unless endorsed. Premiums start $300 per year for small business.
1 votes
Marked as accepted