In recent times there has been a huge amount of Cyber Business Interruption claims paid out in Australia.
Chubb recently confirmed to us that last year the company paid out around two dozen claims of Cyber BI losses, with numerous others still being processed. These claims range from a couple of thousand dollars to several hundred thousand.
The volume of claims demonstrates it is not an emerging issue (although its seriousness and applicability to SME businesses will certainly increase) but very much an established one, affecting companies of any size.
What is Cyber Business Interruption?
For a long time business interruption (BI) cover has protected companies from interrupted (or lost) income caused by unexpected events such as fires or floods.
But in the digital age, non-physical interruptions often pose the greatest risk. This is why Cyber Security Business Insurance is so important.
The need to be prepared
Despite being one of the fastest growing risks for Australian businesses, many organisations have not prepared for the financial impact of an interruption caused by a cyber event.
Data and trends indicate that organisations should operate on the assumption that cyber attacks will occur and that such attacks will remain a constant challenge. Sadly it isn’t a matter of if but when a data security breach will happen.
Other kinds of Cyber Security Business Insurance
There are other important areas of cyber security for businesses to take into account. These include:
- Privacy Liability (including suits by customers arising from system security failures that result in potential or actual unauthorised access to or dissemination of private information on the internet)
- Content Liability (including suits arising from intellectual property infringement, trademark infringement and copyright infringement)
- Reputational Liability (including suits alleging disparagement of products or services, libel, slander, defamation and invasion of privacy)
If you would like to take out any of these kinds of Cyber Security Business Insurance (or any others) please visit this page. To get an insurance quote in the fastest timeframe, online applications are available.