According to a 2013 article by Insurance & Risk Professional, criminal activities carried out by means of computers or the Internet cost Australian businesses $4.5 billion annually. Known as cybercrime, these activities typically range from fraud, hacking, money laundering and theft to cyberstalking, cyberbullying and identity theft.
As a business of any size, it is likely you rely on IT infrastructure to some degree. If so, you will be exposed to the risks of business interruption, income loss and possibly reputational damage if your IT equipment or systems fail or are interrupted. Under new Privacy Legislation that came into effect in March 2014 you may also have an exposure to penalties of $340,000 for individuals and $1.7 million for companies, for breaching the legislation.
The good news is these exposures and many more that will affect your business can be covered by a Cyber Liability & Privacy Insurance Policy.
- First Party Costs – Your own costs to respond to a breach, such as IT Forensic Costs, Credit Monitoring Costs and Cyber Extortion Costs.
- Third Party Claims – Your liability to third parties from a failure to keep data secure, system failures and impaired access, reputational liability (libel and slander etc.) including investigation and defence costs. Also includes fines & penalties following breaches of the Privacy Act.
- Business Interruption – reimbursement of your lost profits resulting from the breach including extra expenses.
Cyber Risks insurance should be taken out in addition to traditional business insurance as the latter does not cover losses in connection with the use of technology.
To discuss further or to obtain an obtain an obligation-free quotation, please contact Austbrokers SPT.