Business Insurance
Cyber Insurance
A compromised account or unavailable system can interrupt trading long before the full extent of an incident is known. Cyber insurance may provide access to specialist response support and cover selected financial losses and liabilities; it is not a substitute for effective security.
What it can cover
Depending on the sections selected and policy triggers, cover can include:
- Incident response, forensic investigation, legal assistance and eligible notification costs after a data breach.
- Restoration of affected data and systems, and covered interruption losses after a waiting period.
- Liability claims relating to privacy or network security, and certain extortion response costs where lawful and insured.
Common risks and exposures
Ransomware, stolen credentials and misdirected personal information can affect businesses of any size. Reliance on cloud platforms and external IT providers adds another layer: interruption at a supplier is not always treated the same way as an incident in your own systems.
Who may need this insurance
Businesses that hold personal or confidential information, take electronic payments or rely on connected systems should consider their exposure. The sensitivity of records and the cost of downtime can matter as much as the number of employees.
What KIB Group considers
- Your data, systems, payment processes and reliance on outsourced technology providers.
- Multi-factor authentication, tested backups, access controls, patching and staff training as described in the insurance application.
- Incident response contacts, waiting periods, restoration periods and sublimits for fraud, supplier outages and other extensions.
Exclusions and considerations
Cybercrime and payment fraud are not automatically included. Pre-existing incidents, inaccurate statements about security controls and particular infrastructure failures can affect cover. Follow the policy’s incident response process promptly; engaging advisers or incurring costs without required consent may affect reimbursement.
Questions worth asking
Does cyber insurance cover a fraudulent invoice payment?
Only where the relevant fraud or social engineering cover applies. Some cyber policies exclude these losses or apply separate verification conditions, excesses and sublimits. Crime insurance may also be relevant, so the two policies should be considered together.
Will my property business interruption cover a cyber outage?
Not necessarily. Traditional property business interruption commonly depends on insured physical damage. Cyber interruption cover has different triggers, waiting periods and loss calculations, including specific rules for external service providers.
Related insurance
Cover starts with a conversation.
Talk with our Melbourne-based team about your business, wherever you operate in Australia.
This is general information, not personalised financial product advice. Cover varies and is subject to policy terms, conditions, limits and exclusions. Consider the relevant policy wording and your circumstances before deciding; an enquiry does not bind cover.
