Cyber Insurance

Insure your business against hacking or loss of data.

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Cyber Insurance:

A Must-Have in the Digital Age

Cyber insurance is, relatively speaking, a new insurance coverage that was first made available in the late 1990s. Originally aimed at protecting early internet adopters from hacking and data breaches, cyber insurance has evolved into a must-have insurance policy.

As the internet and technology have evolved, so has the cyber insurance industry. Insurance coverage has expanded to cover a wide range of cyber risks, including ransomware, data breaches and insider threats.

Nowadays, the need for cyber insurance is universal, spanning across all business sizes and industries. No business is immune from the risks of the digital world.

Unlike traditional business insurance that covers physical loss, cyber insurance is designed to handle the expenses related to cyber incidents, such as legal costs, customer notifications, crisis management support services, and, in some cases, even ransom costs.

It’s not just a luxury; it’s a necessity.

“Great service, and prices. Very friendly, reliable and helpful. Highly recommended them and will continue to use them for my insurance needs.”
Milenko Babic

Why choose us for your cyber insurance?

Fast Cover

Multiple Quotes

Cyber Insurance Experts

Tailored Packages

Types of Cyber Insurance Policies

In the past decade, cyber insurance has become a stand-alone insurance policy. In the past, as well as currently, this type of insurance could be attached to other insurances as an extension, including:

Whilst these extensions of coverage can still be beneficial to a business, obtaining stand-alone cyber insurance is the recommended way to ensure that your business has maximum protection.

In Australia, insurers offer two different types of coverage for businesses. The standard type of cover is ‘Static’ cyber insurance. This type of cover is applied for in the standard way via a completed proposal form. The insurer then assesses your proposal form, applies its underwriting guidelines and offers coverage based on that information.

The second type of coverage is Active Cyber insurance. Active insurance generally involves the insurer providing additional risk monitoring services.

Our insurance partners also offer risk management solutions, including initial health check scans and ongoing monitoring services. These benefits help businesses with limited resources understand the online risks they may encounter.

Understanding Your Cyber Insurance Coverage

Cyber insurance is generally split between two coverage options – first-party cover and third-party cover.

First-party coverage offers protection directly to your business. This section can include cover for:

  • System Damage
  • Social Engineering Fraud
  • Privacy Breach Notification & Loss Mitigation
  • Privacy Fines & Investigations
  • Cyber Extortion Cover
  • Personal & Brand Reputation Cover
  • Computer Crime
  • Business Interruption

Third-party coverage offers protection against damages caused to another party. These losses are generally due to failure or negligence that leads to a cyber event affecting those third parties.

Third-party coverage includes typically cover for options such as: 

  • Privacy Breach Liability
  • Media Liability (copyright infringement, defamation, etc., from electric content)
  • Computer Virus Transmission & Hacking
  • Regulatory Defence & Penalties imposed by Regulatory Bodies

Depending on the nature of the business and its specific risk exposures, a comprehensive cyber insurance policy may include both first-party and third-party covers to provide a well-rounded risk management solution.

How Cyber Insurance Shields Your Business

Recovering from a cyber-attack can be a stressful journey. Working with your insurance broker to obtain suitable cyber insurance can ensure that you have help on your side.

Insurers nowadays have all the tools at their disposal.

The types of specialists that insurers can engage to help your business recover from a loss include:

  • Cybersecurity Specialists
  • Forensic Investigators
  • Legal Experts
  • Crisis Management and Public Relations Firms
  • Regulatory Compliance Consultants
  • Identity Theft and Credit Monitoring Services
  • Ransom Negotiators
  • Data Recovery Specialists
  • Cyber Risk Management Consultants

Having this extensive team working side by side with your business should provide some peace of mind that your business will be able to recover from a cyber-attack.

Choose Webber Insurance: Tailored Cyber Protection for SMEs

At Webber Insurance, we understand that each business is different. Our expertise in the SME sector allows us to offer policies that provide comprehensive protection and value, safeguarding your company against the evolving landscape of cyber threats.

We work closely with our insurer partners to understand their offerings and how these insurance policies can be suitable for your business. It is our job to work with you to understand your business and recommend an appropriate insurance option.

Our insurance partners also offer risk management solutions, including initial health check scans and ongoing monitoring services. These benefits help businesses with limited resources understand the online risks they may encounter.

The Webber Insurance Process: Making Cyber Insurance Simple

Our team of brokers understand cyber risk and are here to help. Arranging a quote is simple. Complete your details via our online form. If assistance is required, please reach out to us via phone, online chat or email.

Once we receive your form, we will generally start by obtaining a complimentary cyber risk report. We will provide this document to you either before or when you receive your quote.

This risk report gives you a snapshot of your current cyber risk profile. It provides some great information on how to work with your IT provider to secure your business.

Once cover has been placed, we will provide you with ongoing support, updates on the latest cyber threats and any changes to your risk report.


What is Cyber Insurance, and why do businesses require it?

All businesses now have some online exposure, whether via their website, emails or payment gateways. Cyber insurance is designed to protect businesses against the financial and reputational damages arising from cyber incidents.

Incidents such as data breaches, cyber-attacks, and other cyber-related threats are generally covered within a cyber insurance policy.

How has Cyber Insurance evolved over the years?

Since the early 1990s, cyber insurance has evolved from basic cover for hacking and data breaches to comprehensive policies covering a wide range of cyber risks, including for both damage to a business and its customers.

As the world evolves, insurers must continually update their offerings to ensure maximum protection. The introduction of ‘active insurance’, which incorporates cyber risk scanning, is a positive step forward for insurers to understand a business’s overall risk profile better.

What is the difference between a stand alone Cyber Insurance policy and cyber cover provided as an extension to an existing policy?

Stand-alone cyber insurance policies will generally provide coverage for both first-party losses (the business’s exposure) and third-party losses (their customers).

Extensions to existing policies, such as professional indemnity and management liability insurance, often only provide limited cyber coverage, such as third-party only cover.

A cyber insurance policy is a fantastic addition to a business’s insurance program to maximise its protection.

Can you explain the difference between 'Static' and 'Active' cyber insurance coverage?

‘Static’ cyber insurance refers to traditional insurance coverage obtained via completing a proposal form, with an insurer assessing the risk based on the information within the form.

‘Active’ cyber insurance involves additional risk monitoring services such as live cyber risk scanning. These insurers also generally provide an ongoing scanning and monitoring service for their clients, which overall is a more dynamic approach to cyber risk management.

Is 'active' Cyber Insurance more expensive than 'static' Cyber Insurance?

All insurers have their individual underwriting guidelines and acceptance criteria. Those who provide upfront scanning services can generally obtain a better understanding of a business’s overall cyber risk profile. Suppose negative items come up within the scan. In that case, this may limit their ability to offer coverage either partially or in full.

On the other hand, insurers that rely solely on completed submissions from clients can miss, overlook or disregard information that they could have otherwise obtained in a scan. Some insurers put greater value into a comprehensive client submission where they can underwrite it more specifically.

Each business, therefore, is different. Some ‘active’ insurance policies may be more expensive than ‘static’ insurance policies; however, for the next client, this could be the other way around.

Working with an insurance broker who really understands cyber insurance is key, as they can work with insurers that best suit your business requirements to obtain the more suitable solution for your business.

What types of cyber risks are covered under cyber insurance policies?

Cyber insurance policies typically cover risks such as:

  • Data breaches
  • Cyber extortion and/or ransomware
  • Business interruption due to cyber-attacks
  • Data restoration costs
  • Legal fees
  • Customer or regulatory notification costs
  • Regulatory fines & penalties

Each cyber policy is different and uses varied language. Working with an expert will allow you to compare covers across multiple insurers best.

What is first-party coverage in cyber insurance, and what does it typically cover?

Third-party coverage protects against claims made by external parties affected by a cyber event due to the insured’s actions or failure to act, covering:

  • Privacy Breach Liability
  • Media Liability (copyright infringement, defamation, etc., from electronic content)
  • Computer Virus Transmission & Hacking
  • Regulatory Defence & Penalties imposed by Regulatory bodies

What process does Webber Insurance follow to assess and provide cyber insurance?

Webber Insurance has been working closely with SME businesses for many years to protect their cyber risk. We have access to many different insurance providers, and we have a good understanding of who should be able to assist with coverage.

As a new client, the choice is yours as a starting point. You can opt to speak with one of our brokers up front, or you can complete our cyber insurance proposal form online.

We have multiple partners who can conduct vulnerability scans for your business. These scans can be done either before or after we receive a completed proposal form.

Once we have the required information, we will submit it to our insurer partners and await their feedback. Once all information is received, it is collated and sent back to you.

Generally, then a further conversation will take place to discuss this information so that you can better understand what you will be covered for.

Coverage can then be finalised on your behalf. This process can take as little as a few hours to multiple weeks, depending on the complexity of your business.

How do cyber insurers assist businesses in recovering from a cyber loss?

Insurers can engage a range of specialists to assist a business in recovering from a cyber loss, including:

  • Cybersecurity Specialists
  • Forensic Investigators
  • Legal Experts
  • Crisis Management and Public Relations Firms
  • Regulatory Compliance Consultants
  • Identity Theft and Credit Monitoring Services
  • Ransom Negotiators
  • Data Recovery Specialists
  • Cyber Risk Management Consultants

How can cyber insurance mitigate the financial impacts of a data breach on a business?

Cyber insurance can cover direct costs relating to a data breach, including legal fees, notification costs, and indirect costs such as business interruption. Having this cover in place helps alleviate the financial burden.

Businesses need to understand their requirements around mandatory notification of data breaches and what types of SME’s are required to notify a breach.

Does cyber insurance provide coverage for ransomware payments, and under what conditions?

Yes, cyber insurance can cover ransom payments; however, it is important to note that there is no hard and fast rule. Each incident is treated on its merits by the insurer and their claims team.

There are times when a ransom cannot be paid. When insurance is not involved, business owners and/or directors need to understand these limitations, which include money laundering, hacking or terrorist group funding or breaching the Corporations Act 2001 (Cth).

In what ways does cyber insurance complement existing cybersecurity measures within a business?

Implementing cybersecurity measures is good risk management with an aim to prevent incidents from occurring.

Cyber insurance provides a financial and support safety net when an incident occurs to have the support in place to get your business back on track.

Most cyber insurers want to work with your IT team to ensure that it is a complementary approach rather than a conflicting approach.

Each insurer also has minimum cyber security measures it requires from a business prior to cover being placed. In the instance where a business fails to meet these requirements, it will be your IT team that has the responsibility to get you up to the required standard.

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