The importance of Cyber and Privacy Insurance

In recent times there have been wide spread reports of major cyber-attacks on a number of organisations across the globe.

The malicious software responsible for these recent attacks is known as ‘ransom-ware’ and is transmitted by email. The ‘ransom-ware’ activates when an email attachment is opened after which it proceeds to take over the user’s computer, encrypting the data (documents and spreadsheets) and then demanding a fee (ransom) to unlock it.

These recent incidents have affected only Windows operating systems, however they highlight the importance of being vigilant regardless of what software or platform you are using. The following are good practices to keep in place to maintain the integrity of your system and data:

  • Ensure software updates are enabled.
  • Make sure you have installed virus protection software and that it is active.
  • Avoid opening emails from unknown sources.
  • Do not open email attachments from senders you do not know.
  • Backup your data regularly.

There are many types of malicious software that are designed to corrupt data and breach privacy, and business owners and managers are responsible for doing all they can to maintain their systems to reduce the likelihood of this occurring. Privacy legislation introduced in March 2014 contains penalties of $340,000 for individuals and $1.7 million for companies that fail to meet their obligations and breach legislation.

Cyber and Privacy Protection Insurance can help protect businesses from the financial impact of a cyber-attack or a privacy breach. Cyber Insurance offers a broad cover for wide variety of risks resulting from the use of technology. Features may include:

  • Cover for your civil liability resulting from data breaches

  • Contractual fines coverage, including credit card company and PCI fines, arising from privacy breaches

  • Cover for your own costs to notify individuals in the event of a privacy breach where required by law and the cost of actions taken to mitigate a larger liability claim

  • System repair and restoration cover in the event of accidental damage to data, including a computer virus or hack attack

  • Cover for your lost revenue arising from system downtime after a computer virus or hack attack

  • Electronic fraud coverage

  • Cover for your liability arising from a breach of statutory ecommerce duties

  • Media liability cover for electronic content, including intellectual property rights infringement and defamation

  • Give you cover you for claims made anywhere in the world as standard

  • An experienced claims panel will react quickly and locally, from privacy breach notification to electronic fraud investigation

  • If your brand is at risk, they will hire PR consultants to manage the impact.

For more information on how you can insure your business against cyber crime please contact AB Phillips on 1300 242 136 or email info@abphillips.com.au