What is Cyber Protection Insurance? Why do you Need it?

Every day, virtually all companies in Australia handle electronic data containing sensitive information about their clients as well as corporate information about their own company. All are faced with real liabilities if data falls into the wrong hands or enters the public domain accidentally or fraudulently.

Cyber criminals have many faces and are the growing scourge of commerce worldwide. From hackers who seize and hold your data for ransom to denial of service attacks; inadvertent or negligent breaches of client data; websites not being accessible, leading to loss of reputation… the outcomes of a cyber security incident can have a significant impact on the finances and reputation of a business.

What is Cyber Protection Insurance?

Cyber Protection Insurance is a relatively new form of cover. It’s designed to help protect your business from the financial impact of computer hacking or a data breach.

Why do I need it?

If your business has a website or electronic records, you’re vulnerable to cyber hackers. In fact, it’s likely that your business will suffer a cyber attack at some stage.

A cyber attack could cost your business more than money. It could also threaten your intellectual property and put customers’ personal information at risk – which could damage your reputation.

If you see it, report it!

In February 2017 the Senate passed the Privacy Amendment (Notifiable Data Breaches) Bill 2016 -setting up a mandatory nationwide data breach notification scheme. This means if you spot a security breach which may cause unauthorised access or disclosure of personal information, you’re legally required to report it to the Office of the Australian Commissioner within 30 days. You’ll also need to notify the people whose information has been affected.

Did you know?