What Is Cyber Liability Insurance And How Can It Protect You?

What Is Cyber Liability Insurance And How Can It Protect You?

Cyber liability insurance is a standard risk management program which can protect a company from exposure to cyber criminals. In a 2017 threat report by the Australian Cyber Security Centre, it was found out that small businesses are among the primary targets of themed-phishing emails. Regardless of that, only 14 percent of Australian small businesses are implementing a cyber liability insurance policy.

In related studies, Telstra also found out that 21.7 percent of Australian companies are not using or even considering any cybercrime precautions. Other than that, in a data gathered by the Australian Bureau of Statistics, about 95 percent of Australian businesses utilise the internet for business purposes. In another survey by the Australian Cyber Security Centre, at least 90 percent of Australian organisations encountered some type of cyber security incident in 2015.

Likewise, web experts estimate that the Australian economy is in danger of losing at least $16 billion alone in cyber attacks in the foreseeable future. In a nutshell, accessing the internet puts businesses in danger of cyber attacks. Normally, a cyber liability insurance cover includes the expense of keeping relevant company data away from prying eyes as well as the cost from the interruption of your business. Apart from that, cyber liability insurance Australia provides also includes coverage for data breach notification costs, public relations expenses, and third-party cyber liability.

cyber liability insurance

Other Aspects Cyber Liability Insurance Covers

Given that more people complete business transactions online, the Australian government sees cybercrime as one of the most dangerous coercion to its economy.  Among the aspects cyber liability insurance deals with include:

1.       Coverage Beyond the General Liability Policy

A good number of general liability regulations do not incorporate damages suffered on the internet. Ordinarily, a general liability policy only covers your businesses’ legal liability for third-party property losses or personal injuries. Simply put, this indicates that someone needs to be identified as the one responsible for the loss of data or some physical destruction needs to occur for the general liability policy to work. However, competent cyber liability insurance plans fill this essential chasm since it covers the company’s first and third-party damages as well as lost profits and breaches to the Privacy Act.

2.       Legal Expenses And Customer Churns

The damage of a cyber attack is costly enough to cripple a fledgling business. As matter of fact, estimations show that cyber attacks normally can cost a business as low as $200,000 to as high as $600,000 in data damages. However, cyber experts added that these estimates do not account for the total casualty of a cyber attack as it could also result in damages to share price and loss of customer trust as well as loss of contract revenue and IP. At the very least, cyber liability insurance can help soften the blow as it covers risks such as legal expenses and customer churns.

Furthermore, a cyber insurance plan can be modified based on the company’s specific needs. Contact GSK Insurance today for a detailed quote.