Sydney Insurance Brokers

Cyber Crime Insurance

In the realm of cybercrime, businesses typically fall into three categories: those that have been attacked, those that will be, and those that have been attacked but are unaware of it. Cybercrime encompasses a range of criminal activities using computing devices and data, from simple viruses or phishing scams to severe attacks like malicious code or web-based threats that compromise business security.

Key Aspects of Cybercrime Insurance

  • Business Interruption: Covers loss during and post-breach recovery.
  • Intellectual Property Indemnity: Protects against third-party claims for intellectual property rights violations.
  • Extortion Coverage: May include ransom payments to resolve threats.
  • Regulatory Intervention Costs: Covers expenses related to data regulator investigations.
  • Remedial System Engineering: Addresses costs for restoring network health after a data breach.

Exclusions in Cybercrime Insurance

  • Intentional, fraudulent, or criminal acts by the business.
  • Physical injuries or tangible property damage.
  • Financial failure or insolvency.
  • Software upgrades or improvements.
  • Cyber attacks known to the business prior to policy activation.

Cost of Cybercrime Insurance

The cost of cybercrime insurance depends on specific business needs, risks, and size. It’s a crucial consideration for businesses to weigh against the potential costs of not having coverage. Cybercrime can impact anyone, from individuals to large corporations, and cyber insurance is essential for protecting against significant financial losses, business disruptions, and regulatory fines or penalties​​.