Cyber Insurance
15 Docs
What should I do if I discover a Data Breach
Last Updated: July 12, 2025If you suspect or confirm a data breach, it’s important to act quickly to minimise harm. Taking immediate action helps reduce the impact on your business and any individuals affected. Steps to follow: Contain the breach by restricting access to affected systems and isolating impacted areas Contact your IT support team or service provider to identify the cause and secure your systems Assess what data has been affected, including whether personal or sensitive information has been compromised Determine your legal obligations under the Notifiable Data Breaches (NDB) scheme This may include notifying the Office of the Australian Information Commissioner (OAIC) You may also need to notify any individuals whose personal information was involved Notify your cyber insurer or broker as early as possible You may be able to access forensic IT experts, legal guidance, crisis communication support, and breach response services Contact us if you need help responding to a breach. We’ll work with you to notify the insurer and ensure you receive the support you need during what can be a difficult time.
How does Cyber Insurance complement my Cybersecurity measures?
Last Updated: July 12, 2025Cyber Insurance doesn’t replace strong cybersecurity; it supports it. Your internal IT controls help prevent incidents, while insurance helps manage the financial and operational fallout if something still goes wrong. Cyber Insurance can provide: Financial protection if your business suffers a cyber incident Access to expert services such as forensic IT, legal support, and crisis management Help with breach response and regulatory notification obligations Insurers usually require you to have key protections in place before cover is issued. These may include: Multi-factor authentication Regular data backups Endpoint protection Staff awareness training Your IT provider plays an important role in ensuring your systems meet these minimum requirements. Together, cybersecurity measures and insurance provide a more complete risk management solution. If you’re unsure whether your business qualifies for cover or want help assessing your risk, contact us and we’ll walk you through the options.
Does Cyber Insurance cover ransomware payments?
Last Updated: July 12, 2025Yes, Cyber Insurance can provide cover for ransomware payments, but it is not guaranteed in every case. Each incident is assessed individually by the insurer and its claims team, based on the specific circumstances and legal or regulatory obligations. Policies often include coverage for ransom payments as well as support services such as negotiation, forensic IT assistance, and legal advice. However, insurers can only approve a ransom payment if it is legally permitted. There are legal restrictions on when a ransom can be paid. Payments are prohibited if they would breach sanctions law, anti-money laundering rules, or support criminal or terrorist organisations. The Corporations Act 2001 may also prevent certain payments depending on the nature of the business. As of May 2025, some businesses must now report ransom payments under the Cyber Security Act 2024. If your business has an annual turnover of $3 million or more, or operates in a critical infrastructure sector, you must notify the Australian Signals Directorate (ASD) within 72 hours of making a payment. While enforcement is currently focused on education, penalties are expected to increase from January 2026. If you are unsure whether your policy includes ransomware cover or whether you need to report...
What is the difference between ‘Active’ and ‘Static’ Cyber cover?
Last Updated: July 12, 2025‘Static’ Cyber Insurance refers to traditional policies arranged through a proposal form. The insurer assesses your cyber risk based on the information provided at the time of application. Once the policy is issued, there is no ongoing monitoring or updates unless changes are made at renewal. ‘Active’ Cyber Insurance works differently. These policies include ongoing monitoring tools, such as vulnerability scanning and real-time threat detection. The insurer may provide software or access to a dashboard that helps you manage cyber risk continuously. Some policies even adjust pricing or coverage based on your security posture throughout the year. The key difference is that active cyber policies are more interactive and risk-aware, while static policies rely on a one-time snapshot of your risk profile. If you’re unsure which type of policy suits your business, contact us and we can help you assess your needs.
How is Cyber Insurance priced?
Last Updated: July 12, 2025Cyber Insurance premiums are based on several factors: Your industry and type of work – Businesses that handle sensitive customer data, operate online platforms, or provide professional services are generally seen as higher risk. Annual turnover – Insurers often use your turnover to assess the potential scale of exposure and calculate premium bands. Cybersecurity measures – The strength of your IT systems plays a big role. Insurers will look at things like multi-factor authentication, backup procedures, staff training, endpoint protection, and patch management. Claims history – If your business has previously made cyber claims or experienced breaches, this may impact pricing or availability of cover. Coverage level – Higher sums insured or lower excesses will generally attract higher premiums. Regulatory risk or contract requirements – Businesses working in health, finance, or government contracts may face stricter underwriting due to compliance obligations. For smaller businesses with basic exposure and good security controls, premiums may start around $800 per year. High-risk industries, larger businesses, or those requiring comprehensive cover may see costs significantly higher. Some insurers now offer “active” cyber policies, which price premiums dynamically based on ongoing monitoring and your business’s cyber health throughout the year. Contact us to discuss your...
What industries are most at risk of Cyber Insurance claims?
Last Updated: July 12, 2025Any business that uses digital systems, stores sensitive information, or operates online can be exposed to cyber risk. However, some industries are more frequently targeted or impacted due to the nature of the data they handle and their operational setup. Industries most at risk include: Professional services – including law firms, accountants, engineers, and consultants that hold sensitive client records. Healthcare – with access to highly sensitive personal and medical data, this sector is a major target for ransomware and data breaches. Financial services – such as mortgage brokers, insurance agencies, and advisers handling financial records and identity documents. Education – schools and training providers store both student and family data, often with limited security budgets. Retail and eCommerce – especially businesses processing payments or storing customer credit card details. Technology and SaaS businesses – including software developers and IT service providers who may be targeted as entry points into larger supply chains. While these industries are most commonly targeted, cyber risks exist for almost all businesses that use cloud platforms, online communications, or store personal data. Contact us to assess your risk and explore suitable Cyber Insurance options.
What is generally excluded under Cyber Insurance
Last Updated: July 12, 2025Cyber Insurance policies vary between insurers, but there are some common exclusions to be aware of. These typically include: Incidents or breaches that were known but not disclosed before the policy started Losses caused by outdated or insufficient IT security systems Physical theft or loss of hardware, which is usually covered under business property insurance Fraud or dishonest acts by employees, which may need a separate crime or fidelity policy Understanding your policy exclusions is just as important as knowing what’s covered. We’ll help you review the terms to ensure your cover aligns with the risks your business faces. Contact us if you’d like help reviewing your policy or arranging appropriate protection.
What limit of Cyber Insurance do I need
Last Updated: July 12, 2025The level of Cyber Insurance your business needs depends on a range of factors, including: The type and sensitivity of the data you hold The volume of client or customer information stored How reliant your operations are on digital systems and platforms Whether you process financial transactions or store payment information Any regulatory or contractual requirements that apply to your industry Typical cover limits range from $250,000 to $5,000,000. Businesses that deal with sensitive data or operate in high-risk sectors may require a higher level of protection. Some commercial contracts now also require evidence of Cyber Insurance, much like Professional Indemnity or Public Liability cover. We can help assess your exposure and recommend a suitable limit that aligns with your industry, operations, and contractual obligations. Contact us to review your options and arrange a quote tailored to your needs.
Will Cyber Insurance cover legal and regulatory fines
Last Updated: July 12, 2025Cyber Insurance policies may include cover for certain fines or penalties, but only if they are legally insurable. This typically relates to breaches of privacy regulations or failure to meet obligations under laws such as the Notifiable Data Breaches (NDB) scheme. Cover is not guaranteed in all cases. Whether your policy includes this protection depends on: The specific wording of your policy Your business location and relevant legal framework The type of fine or regulatory action involved Some fines, particularly criminal penalties or those imposed by foreign regulators, may be excluded altogether. We can help review your policy and clarify whether cover for fines or penalties is included based on your risk profile and jurisdiction. Contact us if you’d like to better understand your options or need help reviewing your current cover.
Is Social Engineering or Invoice Fraud covered?
Last Updated: July 12, 2025Cyber Insurance policies can provide cover for Social Engineering, Invoice Fraud, and other cybercrimes involving deception. These incidents often involve someone impersonating a trusted party to trick an employee into: Transferring funds to a fraudulent account Providing sensitive business or client information Paying a fake invoice or diverting a legitimate payment This type of fraud is increasingly common, particularly in businesses that rely on email for financial transactions. Cover for these events is not always included by default. Many standard policies either exclude or place sub-limits on these types of claims, so it’s important to review your wording carefully. We can help you assess your exposure and determine whether your policy includes adequate protection or if an endorsement or additional cover is required. Contact us if you’d like to confirm whether Social Engineering or Invoice Fraud is included in your policy, or if you would like to receive a quote for cover.
What is the difference between First-Party and Third-Party cover on a Cyber Policy?
Last Updated: July 12, 2025Cyber Insurance policies generally include both first-party and third-party coverage, but each protects your business in different ways. First-party cover responds to the direct impact of a cyber incident on your business. This can include: Costs to investigate and contain the breach Restoration of lost or damaged data and systems Business interruption losses due to downtime Crisis management and public relations support Expenses for customer notifications and credit monitoring This part of the policy helps your business recover quickly and minimise the operational and financial disruption caused by the incident. Third-party cover applies when another party, such as a client, supplier, or regulator, holds your business responsible for the incident. This can include: Legal defence costs if a claim is made against you Settlements or damages awarded to affected third parties Regulatory penalties, where legally permitted Breach of privacy claims or failure to meet data protection obligations Third-party cover is essential if your business stores sensitive information or provides services that could expose clients to cyber risks. Understanding the difference between these two components is important when reviewing your policy, as not all insurers offer the same level of protection under each. Contact us to review your current cover and...
I have IT support, do I still need Cyber Insurance?
Last Updated: July 12, 2025Yes. Having IT support is important, but it does not make your business immune to cyber incidents. Even with strong systems and regular maintenance, threats like phishing scams, ransomware, and accidental data breaches can still occur. Cyber Insurance works alongside your IT setup by providing financial protection and specialist response services when things go wrong. It can help cover: Data recovery and system restoration Legal defence costs and regulatory fines (where permitted) Business interruption losses Crisis management and reputational support Notification and credit monitoring for affected individuals Most insurers will expect you to have basic IT protections in place, such as antivirus software and regular backups, but insurance is there for when those controls are bypassed. Contact us to make sure your business is properly protected beyond just your technical systems.
Is Cyber Insurance included in other policies
Last Updated: July 12, 2025In most cases, no. Standard Business Insurance or Professional Indemnity policies do not include cover for cyberattacks, data breaches, or online scams. Cyber Insurance is specifically designed to address the risks that come with operating in a digital environment. This includes: Ransomware and extortion attempts Business email compromise Data privacy breaches Cybercrime, such as invoice fraud, social engineering or phishing Incident response and legal support These exposures typically fall outside the scope of general business policies. If your operations rely on digital systems or involve sensitive information, it’s important to consider whether a separate Cyber policy is needed. Contact us to check if your current cover is sufficient or if a dedicated Cyber policy is required.
What does Cyber Insurance cover?
Last Updated: July 12, 2025Cyber Insurance is designed to protect your business against a wide range of digital risks and threats. It typically includes cover for: Ransomware attacks Business email compromise Data breaches and privacy incidents Regulatory investigations and fines (where allowed by law) Financial losses from cybercrime, such as invoice fraud or phishing Legal defence costs and third-party claims Notification expenses and credit monitoring for affected individuals Crisis management, public relations, and forensic IT support The level and scope of cover can be tailored to match your industry, systems, and risk exposure. Contact us to find out what type of Cyber Insurance coverage is right for your business.
What is Cyber Insurance
Last Updated: June 19, 2025Cyber Insurance is designed to help businesses respond to cybercrime, data breaches, and technology-related disruptions. It can cover the cost of responding to an attack, like notifying clients, recovering data, hiring forensic experts, and managing reputational damage. For small to medium businesses, cyber risks are no longer just a “big company” problem. Even something as simple as clicking on a malicious link or sending a client’s personal details to the wrong email address can lead to a claim. You can view data breaches involving Australian businesses here. Some policies also cover financial loss from scams, such as invoice fraud or social engineering. With the growing reliance on technology and remote work, Cyber Insurance is becoming essential for businesses of all sizes. While this type of insurance and risk may seem overwhelming, please feel free to contact our team for additional assistance.