Claims covered under a Cyber policy are very broad, but are typically three core things: Liability (privacy lawsuits and regulatory defence), Internal Financial Loss (extortion, notification expenses, data recovery, business interruption, crime/theft), and Emergency Incident Response (costs incurred from responding to a Cyber Event).
| Cyber Insurance provides cover for financial loss and expenses that businesses may suffer as a result of a Cyber Event, including cyber attacks from malware or other invasive software, cyber extortion and social engineering. | Claims covered under a Cyber policy are very broad, but are typically three core things: Liability (privacy lawsuits and regulatory defence), Internal Financial Loss (extortion, notification expenses, data recovery, business interruption, crime/theft), and Emergency Incident Response (costs incurred from responding to a Cyber Event). |
A Cyber Event triggers a claim on a Cyber Insurance policy and can be caused by several different scenarios:
What are the Coverages Available?
Main Coverages that respond to a Cyber Event:
1. Privacy Breach Notification & Crisis Management Costs
| When a cyber incident occurs, whether it is through some kind of invasive software (malware, ransomware), phishing or social engineering scheme, or other form of cyber attack, there is usually a privacy breach as a result – i.e. private or confidential information/data is exposed. This policy section provides cover for the costs associated with responding to a privacy breach, including: |
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2. Privacy & Security Liability
| This section protects you from claims/lawsuits as a result of a privacy and security wrongful act, such as:
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3. Cyber Extortion
| Cyber extortion is defined as a threat against the insured computer system to provide ransom in order to prevent a Cyber Attack. | Coverage for this can include: the payment of a ransom, negotiation & mediation costs, crisis management costs & costs to resolve a security threat, and investigation costs to determine the cause of the extortion threat. |
4. Business Interruption – Loss of Profits & Operational Expenses
| Coverage for loss of profits and additional operating expenses incurred because of a cyber event. |
5. Data Recovery & System Damage
| This section covers the costs and expenses for lost, damaged or destroyed IT systems, records, and data. | This can include the retrieving, repairing, restoring or replacing of data or systems, including the removal of malware. |
6. Regulatory Defence and Fines
| This section provides cover for defence costs and regulatory fines that have resulted from a cyber incident, such as a privacy or security breach. |
7. Media Liability
| Coverage for the following incidents that occur from your information through traditional and digital media:
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Additional Coverage Sections and Policy Options:
1. Social Engineering & Funds Transfer
| The fraudulent transfer or theft of funds caused by instructions made by a person purporting to be an authorized employee, outsourced provider or customer of yours. | This coverage is typically sub-limited. |
2. Contingent Business Interruption
| Coverage for loss of profits and additional operating expenses incurred as a result of an interruption to a dependant business/supply chain partner, caused by a cyber event. |
3. Payment Card Data Security Liability
| Coverage for loss of profits and additional operating expenses incurred as a result of an interruption to a dependant business/supply chain partner, caused by a cyber event. |
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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