6 Things You Didn’t Know About Cyber Insurance

1. You don’t need to be online to have cyber risk

You don’t have to run an eCommerce site to be a target. If your business sends emails, stores client data, issues invoices, or relies on cloud-based systems to operate, you’re exposed. In fact, most cyber incidents stem from internal users making mistakes, not external hackers.

2. It gives you access to expert incident response teams

Cyber insurance doesn’t just pay claims. The real value often lies in the immediate support you get. This includes forensic IT specialists, privacy lawyers, crisis PR firms, and data recovery experts, mobilised within hours to contain the damage and get you back up and running.

3. It could protect your directors

If a business suffers a cyber-attack and it’s found that reasonable steps weren’t taken to prevent it, directors can be personally liable. A robust cyber policy helps demonstrate governance and due diligence, an increasingly critical issue under evolving privacy and security regulations.

4. Human error is the number one cause of claims

From clicking a malicious link to sending sensitive data to the wrong person, the biggest cyber risk is not always external, it’s people. Even well-trained staff can make mistakes, which is why cyber insurance matters no matter how secure your systems are.

5. Your policy may not respond if basic protections aren’t in place

Many policies now have minimum security conditions. No multi-factor authentication? Using unsupported software? If basic cyber hygiene isn’t maintained, insurers may reduce or deny a claim. It’s vital to know what’s required and stay on top of it.

6. Blue-collar businesses are the new soft targets

Cyber criminals are now targeting sectors like construction, logistics, trades, and manufacturing, not because of the size of the business, but because they’re often under-protected. These businesses rely on digital tools but usually lack formal cyber security controls, making them easier to breach.

Cyber insurance has moved from being a ‘nice to have’ to an essential part of running a business. It’s not just about payouts, it’s about access to the right experts, protecting your reputation, keeping the business running, and supporting your leadership obligations.

Disclaimer:

KBI PTY LTD is an Authorised Representative (450152) of KBI Group Pty Ltd (ABN 56 167 437 121, AFSL 494792). Any advice in this article is general in nature and does not take your personal circumstances into account. When considering the purchase of an insurance policy, you should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the KBI Financial Services Guide and relevant product disclosure statement.