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How does Cyber Insurance apply to Defence Contractors handling sensitive information?
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Cyber exposure can be particularly important for Defence Contractors and Consultants because they may handle commercially sensitive or Defence-related information.

Cyber Insurance can provide financial protection against certain insured cyber incidents.

What can Cyber Insurance cover? #

Depending on the policy, cover can include:

  • Incident response.
  • Forensic investigation.
  • Data restoration.
  • Business interruption.
  • Privacy liability.
  • Cyber extortion.
  • Notification costs.
  • Legal expenses.
  • Certain third-party claims.

The exact scope varies by insurer.

Does Cyber Insurance satisfy DISP requirements? #

No.

Insurance and Defence security compliance are separate issues.

Defence currently requires DISP members to achieve and maintain the full Essential Eight at Maturity Level 2 across relevant corporate ICT systems.

Having Cyber Insurance does not demonstrate compliance with that requirement.

Does Essential Eight compliance guarantee Cyber Insurance? #

No.

Insurers carry out their own underwriting assessment.

They may ask about controls such as:

  • Multi-factor authentication.
  • Application control.
  • Patch management.
  • Privileged access.
  • Backups.
  • Endpoint protection.
  • Incident response.
  • Staff training.

Strong security controls can assist underwriting but do not guarantee cover.

What information should be disclosed? #

The insurer may need to understand:

  • Type of Defence information handled.
  • Data storage arrangements.
  • Cloud providers.
  • Remote access.
  • Subcontractor access.
  • Security frameworks used.
  • Previous cyber incidents.

Classified or sensitive information should be described appropriately without unnecessarily disclosing protected material to an insurer or broker.

General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.