Cyber Insurance
The facts
- Cybercrime is a growing problem globally, with damages predicted to hit ~$10.5 trillion a year by 2025.
- 22% of Australian businesses experienced a cyberattack during FY21/22, with 76,000 incidents reported.
- Cyber criminals look to exploit vulnerabilities in networks, systems and software, hoping to gain access to sensitive information or disrupt your business.
Some of the most common attacks include: payment redirection and false billing scams, viruses and malware, data breaches and spyware.
Who needs cyber insurance?
Any business who creates, stores or processes sensitive data, or relies heavily on technology, should consider cyber insurance.
Far from simply being an issue for large corporations, cybercrime in small to medium enterprises is growing, as smaller businesses often have weaker security measures in place. In Australia, each cyber incident costs businesses an average of $39,000 and $88,000 per event.
Have you taken proactive steps to protect your digital assets? We can help.
The benefits
Cyberattacks can have devastating consequences, leading to major service interruptions and even business closures. Cyber insurance protects your business financially by covering the costs associated with incidents like data breaches, business interruption, ransom payments and legal liabilities.
It can also provide access to experts who can manage and recover from an attack, such as forensic investigators, public relations support and legal advice. Having cyber insurance also protects your reputation by showing customers that you are committed to protecting their data.
Choosing the right policy
1.
Assess the specific risks faced by your business, to ensure any policies cover them.
2.
Review coverage limits and exclusions to ensure they align with your needs. This includes considering the financial impact of a potential attack and understanding any associated deductibles and co-pays.
3.
Review the policy's terms and conditions, including any requirements for cybersecurity measures and incident response protocols. Some policies offer discounts or incentives for clients who implement security controls, so compliance is important to ensure benefit.
Case studies
- A phishing scheme led to a $6.4M funds transfer fraud. After a forensic investigation by the insurer Coalition, funds were tracked to a fraudulent bank account. $5.5M of the funds were frozen, diverted into a secure account, and seized by law enforcement. The company’s cyber insurance covered the investigation and kicked in for the unrecovered funds.
- A construction company invoiced a vendor for $56,000. The vendor followed the instructions and paid the invoice, but the money never arrived. Coalition, the insurer, Investigated and found a compromised email that led to the breach. The insurer negotiated a joint payment to recover the funds, with the construction company’s costs covered by their policy.
Is it time to review your risk?
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Any insurance product information on this page is general advice only. AFSL: 229847. Phoenix Insurance Brokers, 155 Canning Highway, South Perth, WA 6151, (08) 9367 7399