Best Practices for Choosing Cyber Insurance in Australia

As the digital landscape evolves, businesses in Australia face increasing cyber threats, making cyber insurance a crucial component of risk management. Choosing the right policy can be complex, but you can secure a plan that best protects your business with the right approach. 

Any business, regardless of size, can fall victim to cybercrime. If you are a tradie or have a small to medium business, you will often have limited resources compared to larger companies; this makes them more vulnerable to cyber incidents. Cyber Insurance is designed to protect your business against the impact of attacks. 

Here’s how our Client Managers navigate the process of getting cyber insurance in Australia.

1. We take the time to assess your risk profile

• Understand Your Industry Risks: Certain industries, like finance and healthcare, are more prone to cyberattacks due to the sensitive data they handle. Determine the specific risks associated with your industry.
• Evaluate Your Digital Assets: Consider what digital assets your business holds. This includes customer data, intellectual property, and financial information. The more valuable the data, the higher the risk.
• Review Your Current Security Measures: Assess the strength of your existing cybersecurity protocols. Insurance providers often require a baseline level of protection, so understanding your current setup is essential.

2. We help you understand policy coverage

• First-Party vs. Third-Party Coverage: First-party coverage handles the direct costs of a cyber incident, like data recovery and business interruption. Third-party coverage protects against claims made by customers or partners affected by the breach.
• Incident Response Costs: Ensure the policy covers expenses related to crisis management, including legal fees, public relations efforts, and customer notification costs.
• Business Interruption: Check if the policy covers losses due to downtime or operational disruptions caused by a cyberattack.
• Regulatory Fines: Given Australia’s stringent data protection laws, they confirm that the policy includes coverage for fines and penalties resulting from regulatory breaches.

3. We evaluate policy exclusions:

• War and Terrorism Clauses: Some policies exclude cyberattacks categorized as acts of war or terrorism. Consider whether this exclusion could leave your business vulnerable.
• Acts of Rogue Employees: Check if the policy covers incidents caused by disgruntled or malicious employees.
• Prior Known Events: Ensure no exclusions for incidents or vulnerabilities were known before the policy start date.

5. We review the policy limits and deductibles

• Coverage Limits: Ensure the policy limits align with the potential costs of a significant cyber incident. Consider both immediate costs and long-term impacts, such as reputational damage.
• Deductibles: Review the deductibles to ensure they are affordable and realistic for your business.
• Your unique risks and recommend appropriate coverage options.
• Policy Comparison: They can help you compare different policies and providers, ensuring you get the best value for your investment.

6. We stay up to date with any Cyber Threats

• Evolving Risks: Cyber threats are constantly changing. Ensure that your policy can be updated to reflect new risks and vulnerabilities.
• Regular Policy Reviews: Schedule regular reviews of your cyber insurance policy, especially after significant changes in your business operations or the cyber threat landscape.

What cyber insurance can protect your business against

• Ransomware

Ransomware is malware that encrypts your data and demands a ransom payment in exchange for decryption. A data breach like this can lead to revenue loss and potentially damage your business reputation. You can protect yourself against this type of attack by backing up any data and making sure your team is trained and knows what to do if an attack occurs.

• Phishing attacks

To remain protected against phishing attacks, educate yourself and your staff on what fraudulent emails or messages may look like. Your business should also adopt a strict code of conduct that informs staff not to disclose sensitive information under any circumstances. Employing two-factor authentication is also a useful protective tool. 

• DDoS attacks

A Distributed Denial of Service (DDOS) attack involves flooding your website with illegitimate traffic to overwhelm it and prevent legitimate users from accessing it. This can have a damaging impact on your business reputation and ultimately lead to loss of income. To avoid these attacks, you should implement anti-DDoS software and regularly monitor network traffic for inconsistency.

• Malware

Malware is any software designed to harm a network, including viruses. To avoid malware impacting your business, use anti-malware software and update your operating systems regularly.

• IoT attacks

Internet of Things (IoT) attacks include hacking smart devices and channels that connect IoT components. Defend against these attacks by implementing strong passwords, updating devices regularly, and limiting the number of connected devices. 

Protect your business against cyber risks with Atlantic Insurance

To protect your business against cyber risks, you must have an appropriate cyber incident response plan. Cyber insurance products like cyber liability insurance can cover the damage caused by cyber breaches. It can also cover the cost of business interruption, fines and penalties and reputation control to ensure your business is not left vulnerable. 

Atlantic Insurance has been providing tailored insurance programs to protect against the negative impact of cyber attacks for the last twenty years. Speak with an experienced Client Manager at Atlantic about specific Cyber Insurance products you require today and manage cyber risk. 

Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. You should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.