Cyber insurance protects businesses from the financial impact of cyber threats, such as data breaches, hacking, and online fraud. It helps cover the costs of recovery, including financial losses and legal expenses.
What Is Cyber Insurance?
Cyber insurance is a specialized policy designed to mitigate the financial and operational effects of cyber incidents, including data breaches, ransomware attacks, and system outages.
As digital threats evolve, this coverage enables businesses to respond effectively, recover losses, and comply with legal obligations.
What Cyber Insurance Covers
Cyber insurance generally includes both first-party and third-party coverage:
First-Party Coverage
Data Recovery & System Restoration:
Costs to restore lost or corrupted data and repair affected systems.
Business Interruption:
Compensation for income lost due to system downtime or cyberattacks.
Cyber Extortion & Ransomware:
Coverage for ransom payments and expert assistance to handle cyber extortion threats.
Incident Response:
Access to forensic investigators, legal advisors, and PR consultants for managing a breach.
Notification & Credit Monitoring:
Costs for notifying affected customers and providing identity protection services.
Third-Party Liability
Privacy Breach Claims:
Legal fees and damages if customer or employee data is exposed.
Regulatory Fines & Investigations: Coverage for fines and legal defense related to privacy law breaches, such as those under the Privacy Act 1988.
Media & Defamation Claims:
Protection against claims arising from online content or communications.
Optional Extensions may include
Coverage for social engineering fraud, phishing, and direct financial theft.
Protection for cloud-hosted systems and incidents caused by human error.
Cover at a glance
Protection against data breaches, ransomware, and cyber extortion
Cover for financial loss, system restoration, and business interruption
Access to expert response teams, including legal, forensic, and PR support
Liability cover for privacy breaches, regulatory fines, and investigations
Optional extensions for phishing, social engineering, and direct financial theft
Policies tailored to your industry, business size, and digital risk profile
Who needs it?
Cyber insurance is vital for any organisation that relies on digital systems, stores customer data, or operates online. From small and medium businesses to professional firms, retailers, and service providers, this cover helps protect against the financial and reputational damage caused by cyber incidents.
Small to medium-sized enterprises (SMEs)
Particularly those handling customer data, processing payments, or relying on digital platforms.
Professional Services
Accountants, architects, consultants, and legal firms managing sensitive client data.
Retailers & eCommerce
Businesses with online stores, payment gateways, and customer databases.
Healthcare & Education Providers
Organizations handling confidential medical or student records.
Online businesses
Any business with a website, email system, or cloud-based operations.
Cyber Insurance Adoption in Australia
In Australia, only about 20% of SMEs currently have standalone cyber insurance, despite the increasing risk and high cost of recovery.
A single breach can result in tens of thousands of dollars in downtime, legal fees, and reputational damage.
