1300 849 703

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Cyber Risk

 

Everyone has an Exposure

Not "online" = no risk
Electronic files / records
Every business uses a computer or network
Only big businesses at risk
SME's are easy targets, they lack security measures of larger businesses
Simple mistakes
Ever left your company phone, memory stick or laptop out at a bar or in a cab?

What is covered by Cyber Risk Insurance?

Includes cover for:

Claims for compensation
Investigations
Fines & Penalties (New Privacy Act)
Defence Costs
Legal Representation Expenses
Common claim:

Lose your iPad containing confidential client information.
The client sues you for breach of privacy, and
Privacy Commissioner launches an investigation, and issues a fine

What's covered First Party Cover:

The Insured's own costs, including:

Credit Monitoring Costs
Cyber Extortion Costs
Data Restoration Costs
Forensic Consultant Costs
Notification Costs
Public Relations Costs
Legal Representation Expenses
Common claim:

Your systems are hacked, client credit card data is stolen. We will pay:
Reimbursement of ransom payment to a hacker
Costs to notify all affected clients, and monitor their credit cards
Costs to repair your systems

What's covered Business Interruption

Reimbursement for lost profits, and Necessary expenses to maintain business operations.

Common claim:

Online retailers systems are hacked and the business is unable to trade, we will cover:
Lost profits from the interruption
Additional expenses such as additional call centre staff to handle telephone enquiries from clients trying to buy online
Scary Facts:

$2m average cost of a Data Breach Symantec Press Release, 29 Mar. 2012
30% Australian businesses experience Cyber Crime PWC survey, Mar. 2012
50% increase in reported Cyber Security incidents 2012 Cyber Crime & Security Survey Report 2012
59% of businesses were unaware of the Privacy Act Changes leading up to its inception on 12 March 2014 McAfee Survey
Privacy Legislation

The new Privacy Act commenced 12 March 2014.
What's changed?

A new set of privacy principles that covers the handling of personal information by businesses has been introduced.
Enhanced Powers for the Privacy Commissioner
More power to conduct compliance audits to private organisations
Can apply to the Federal Court or Federal Magistrates Court to compel an entity to comply with an undertaking or to pay compensation for breach of undertakings;
New civil penalties of up to $340,000 for individuals and $1.7 million for companies.
Since then

Privacy breach: Medical records kept in garden shed Tuesday, 15 July 2014
The Australian Privacy Commissioner, Timothy Pilgrim, has found a medical centre in Melbourne in breach of the Privacy Act 1988 by failing to take reasonable steps to secure sensitive medical records.
Privacy breach: 254,000 Australian online dating profiles hacked Wednesday, 25 June 2014
The Australian Privacy Commissioner, Timothy Pilgrim, has found that Cupid Media Pty Ltd (Cupid) breached the Privacy Act 1988 by failing to take reasonable steps to secure the personal information held on its dating websites.


Some Actual Claims Scenarios

1. Charity

Profile: $18M turnover / 80 staff

Background:
Insured targeted with a denial of service (DoS) attack in last few days of a fundraising campaign. Donators unable to make donations for a day while the website down.

What's a DoS attack?
Hacker floods a targeted system with incoming web traffic until it is virtually crippled.

Outcome:

$1, 500,000 paid

Lost donations
Rectifying damage to website


2. Online Retailer

Profile: $5M turnover / 15 staff

Background:
Insured's website was defaced and included a link to a competing retailer's website when hackers gained access to personal information of their customers and overtook their website.

Outcome:

$800,000 paid

Loss of income
Costs to repair website
Defence costs for regulatory actions by the Privacy Commissioner
Cost of notifying the affected individuals & credit monitoring services


3. Law Firm

Profile: $2M turnover / 8 staff

Background:
Server and client records locked by Ransomware software. Only able to get the files released after paying a ransom of $50,000 to hackers.

Outcome:

$150,000 paid

Loss of income
Ransom demand & consultants costs to handle & negotiate ransom
Costs to restore network as hackers refused to release files despite ransom payment

Enquire Now

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1300 849 703

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24 Hrs. & 365 Days

Contact us:
29a Armstrong Way, Highland Park Qld 4211


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