If you are the owner of a business that operates online or stores your clients and customers data and information on an internal network then this information is for you!
As a business, holding this type of information is a big responsibility and puts you at risk in a number of ways. Just like a number of other parts of your business, it is best to mitigate these risks with insurance – Cyber Insurance in this case.
You might have seen a number of alarming stories in the press surrounding breaches of privacy, data and information that impact individuals on a personal level, information such as medical records, credit card numbers, ID/passport numbers, birth dates and other personal information. The type of information you don’t want other parties to have. However, it’s not just on a personal level, corporate and commercial data and information such as proprietary information and intellectual property can be seriously disadvantageous if it gets into the hands of a competitor or extortionist.
Read on to see our answers to some of your burning questions about Cyber Liability Insurance!
What is Cyber Liability insurance coverage, and what does it cover?
Cyber Liability insurance – Sometimes known as Security & Privacy insurance – is an insurance product specially designed to address a company’s liability when it comes to data protection, personal data management and the consequences of losing important or sensitive corporate information. The cyber insurance product covers the business or policyholder’s liability for any damages resulting from a cybersecurity incident.
Cyber Insurance provides coverage for personal and corporate data liability, data administrative investigations, data security liability, data administrative fines, outsourcing liability, repair of individual reputation, repair of the company’s reputation, notification and monitoring costs, electronic data and defence costs. For more information about each of these visit our cyber liability insurance page.
How does cyber insurance work?
When an incident occurs resulting in privacy and data breaches or loss of information, the policyholder is able to make a claim against their cyber liability insurance policy to cover them for any liabilities they face.
It’s important to note that when making a claim it is likely that the insurer will ask the policyholder questions regarding the security precautions they were taking to protect the data/information/infrastructure/etc. If the Insurer determines the precautions taken to be inadequate, they are able to deny the claim and refuse to pay. The same as an insurer would likely not cover you for theft if you parked your motorcycle on the street and left the keys in the ignition.
How can cyber insurance mitigate the risk?
As mentioned earlier, holding and storing important personal and business information comes with its own sets of risks. Many individuals and business owners don’t realise how deep the risks and responsibilities run with cybersecurity, which is why these risks are best mitigated by investing in cyber Insurance. A cyber insurance policy will let you rest comfortably knowing that you are covered for potential cybersecurity incidents. Insurers may also give you advice on how to best protect data and information to further mitigate the risk.
Ensure that your cyber insurance product has exactly what you need it to have. If you need to repair your business’ reputation after an incident or are faced with other immediate response costs, it may be a good idea to include first-party coverage in your cyber insurance product. A Business Insurance Broker will be able to help you identify exactly what type of cover you require.
If you’d like to learn more about cyber insurance or get a quote for your business, get in touch with the helpful team at McKenzie Ross Insurance brokers. We specialise in insurance broking services, risk and financial services and specialised claims management. We can help you to find the right insurance policies and coverage for your business. Call us today on (03) 9691 2222.