Cyberattacks are on the rise, and businesses of all sizes are becoming increasingly vulnerable. In the 23-24 financial year alone, the Australian Cyber Security Hotline saw a 12% increase in calls, highlighting the growing threat*.
Let’s break down some key aspects of cyber insurance, understand the complex landscape and secure the right coverage for your clients.
What does it cover?
Cyber insurance isn’t a one-size-fits-all product. Policies can vary, but here are some common coverages to look out for:
Understanding the Nuances
Cyber insurance isn’t just about external attacks and can also protect against:
- Employee Errors: Accidental data deletion or clicking on phishing links.
- System Glitches: Software bugs or hardware failures that lead to data loss.
Looking out for the Right Policy
Due to the complex nature of the cyber landscape, it’s vital to assess your client’s needs and choose appropriate coverage. Some factors to consider are:
- Industry & Data Volume: Some industries (e.g. healthcare and finance) handle more sensitive data and at greater volumes and face greater regulatory scrutiny. Assure your insurance provider is experienced in and matches the risk of your Insured.
- Security Measures: Prevention is always better than intervention. Businesses with robust cybersecurity practices may receive better premiums. It is also best to recommend that your clients implement an employee training policy and incident response plan.
Other Crucial Factors
Whilst it’s important to ensure that you’re finding the right cover for your clients, the insurer they’re covered with can be just as crucial in the event of an incident, due to:
- Incident Response Time: some insurers can have lengthy waiting periods for their claim’s responses. During an attack, this can lead to further loss of critical data or systems, so ensure that you can trust your insurer to respond immediately when a claim arises.
- Incident Response Handlers: The cyber landscape in Australia is uniquely complex, ensure that you’re working with a insurer uses Australian based lawyers, who are experienced in the local landscape, with an in-house claims team.
- Business Size: business email compromise and fraud were among the top self-reported cybercrimes for businesses and individuals*, reinforcing the need for tailored coverage. Smaller businesses, often lacking dedicated IT security teams, may be particularly vulnerable and require specific support services as part of their cyber insurance policy, such as access to incident response hotlines, vulnerability scanning, and employee training programs.
Staying Ahead of the Curve
The cyber threat landscape is constantly evolving. As brokers, we need to stay informed about emerging risks and policy updates. This allows us to provide the best possible advice and coverage to our clients.
By demystifying cyber insurance and providing clear guidance, we can empower our clients to protect their businesses in the face of ever-increasing cyber threats.
Protect your clients from cyber threats with FTA’s comprehensive Cyber Liability Insurance. Get a quote and see how we compare, or contact with our friendly team on (02) 9003 1660.
Need technical advice?
Contact the Australian Cyber Security Hotline, available 24/7, via 1300 292 371