Cyber and Information Technology Insurance

Sunshine Coast Insurance Brokers

The Risk Which Instantly Stops Your Business

At Comsure, more and more of our clients are experiencing attacks on their IT systems which immediately stops their business operations.  Nationally, this is estimated to be costing business $2 billion per annum and rising.  Extortion, Theft of Data, and malicious attacks, means that all companies, both big and small are at risk. 

One of the biggest concerns is the false sense of security most companies have of their IT security and we strongly recommend every business implement a risk review of their IT system and connectivity.  Insurance protection is available but ranks second to robust security and a comprehensive risk management plan.

The Biggest Threat

Most Cyber insurance purchased is Cyber Liability – that is, covering the exposure to damages from passing on a virus to third parties such as customers and suppliers. Often the biggest threat is loss of revenue particularly if manufacturing processes are impacted, technical or any other work is not able to be recorded or invoiced.

Managing your Risk

• Use a different IT firm to your normal supplier to test and audit the security of your IT system as soon as possible.
• Develop a crisis response plan and then test it.  Ensure that backup strategies can actually restore all critical data.
• If you have a vulnerability arising from systems controlling manufacturing processes, attempt to isolate these systems from the rest of your IT structure by using dedicated and remote servers.
• The most common means of entry into systems is via emails with attachments opened unwittingly by employees containing viruses. Develop an email protocol which involves isolation of email traffic until proven free of viruses and train staff to only open appropriate messages.
• If you are “hacked”, immediately disconnect and close down all IT systems and call your support team. Implement the crisis plan which should include processes to continue business as far as possible and notify your insurance broker if insurance has been effected.

Unfortunately, many cyber risks fall outside traditional insurance policies. This has led to a rapid increase in the number of specially crafted cyber insurance policies on the market.  We recommend broadform cover to protect your business which includes the following.

Privacy & Data Breach	Defence costs and damages for which the Insured or outsourced Service Provider is liable, arising from a loss of data.
Business Interruption & Restoration Costs Cover	Loss of business income (and restoration costs) caused by a targeted attack against the company’s computer system.
Network Security Claims Cover	Defence costs and damages for which the Insured is liable, arising from a targeted cyber attack
Media Liability Claims Cover	Defence costs and damages for which the Insured is liable, arising from the publication or broadcasting of digital media content
Regulatory Costs Cover	Defence costs for a claim by a regulator arising out of the loss of data
Regulatory Fines And Penalities Cover	Monetary fines and penalties levied by regulators (to the extent that they are insurable) arising from a loss of data
Notification Costs	In accordance with legal and regulatory requirements following a loss of data
Response Costs	Fees & expenses for:- Forensic investigation following a loss of data Identifying and preserving lost data Advice on legal and regulatory duties Determining the extent of indemnification obligations in contracts with third party service providers Credit monitoring services and other remedial actions required after a loss of data
Hack Theft Cover	Indemnity for stolen finds due to malicious activities of a third party
Cyber Extortion Cover	Indemnity for the resolution of a credible threat to compromise the Insured’s data or systems
E-Payments	Defence costs, damages and contractual penalties in respect of a breach of Payment Card Industry Data security Standards
Crisis Communication Cover	Public relations expenses of a panel of experts to mitigate any negative publicity from a covered event
Consultant Services Cover	The expenses of an IT expert to determine the amount and extent of a loss covered under this policy

Additionally insurance companies provide access to a 24 hour/7 day hotline service to assist in the recovery of affected systems. 

Please get in contact to discuss this cover and quotations for your business before it’s too late.