CYBER LIABILITY – HOW TO AVOID BECOMING A STATISTIC
Did you know that 20% of Australian businesses have reported experiencing cyber crime, with 40% of attacks directed at SMEs*. So it is not just the large corporations being targeted – small and medium businesses are also at risk.
In recent times there have been well publicised incidents where organisations have had their computer systems ‘hacked’ and private information released or compromised.
Last week alone saw home delivery service Aussie Farmers Direct become the second Australian online retailer to fall victim to a website attack in a week after the details of more than 5000 of its customers were exposed and posted online.
The cost to businesses to repair this type of loss is considerable both in terms of the financial cost and company reputation.
Cyber Liability Insurance should be considered a must have for all businesses which:
- host, store, share or transmit proprietary and confidential data
- transact business and generate revenues online
- would have their business operations impacted by a service disruption
- publish electronic content
- have exposures to consumer Identity Theft, including remediation for notification costs
- outsource storage, processing or sharing of confidential information with third party services
Cyber Liability Insurance has been designed to address the above exposures by covering the following:
Third party claims – from a failure to keep data secure, including claims for compensation, investigations, payment of fines and penalties. Insurers will also pay defence costs and legal representation expenses.
Business Interruption – covering reimbursement for lost profits, as well as necessary expenses incurred to maintain operation of the business as a result of the interruption
Remediation Costs – covering reimbursement of your own costs including credit monitoring, cyber extortion, data restoration, forensics, notification and public relations costs, and legal representation expenses.
Since the introduction of new Privacy Legislation in March 2014, with penalties ranging from $340,000 for individuals and up to $1,700,000 for companies, it is important you are protected in the event your business data is breached.
For more information or a quotation on Cyber Liability Insurance please contact your AEI Account Manager.
* Source: Symantec 2012