cyber liability

Cyber Insurance has now become the final layer of protection that companies need to survive against these continually evolving cyber risks.

Cyber Liability Insurance

Following continual ransomware, ‘Trojan Horse’ and various other cyber attacks, cybercrime is now bigger than the global illegal drug trade. As the world becomes more and more reliant on computers, the cyber criminals become more sophisticated. It is acknowledged by experts that they will continue to find new ways to access business data, records, servers and networks.

 

What does Cyber Insurance cover?

First Party Losses:

  • IT vendors costs to re-instate the system and recover lost data
  • Forensic breach response providers
  • Business Interruption (Loss of Income / Profits)
  • Reputational harm
  • Stolen funds
  • Notification costs to your clients, as required by the Office of the Australian Information Commissioner (OAIC)

Third Party Losses:

  • Privacy Liability defence costs
  • Multimedia Liability
  • Intellectual Property Liability

 

Cyber Insurance has now become the final layer of protection that companies need to survive against these continually evolving cyber risks.

Prepared on 1st April 2021

Any general advice that may be contained within this Policy Wording and Product Disclosure Statement (PDS) or accompanying material doesn’t take into account Your individual objectives, financial situation or needs. You need to decide if the limits, type and level of cover are appropriate for You.

Claim Examples

– Network Security Claim:

Ransomware was installed on the Company’s computer network, which resulted in their files being encrypted. A ransom demand of $80,000 was then made. The Company paid the ransom and received a key to unlock the encrypted files. However, the key only unlocked some of the files, while others remained encrypted.

An IT solutions firm was then retained to assist in restoring the encrypted data. Solicitors were also retained to assess the potential need to notify any individuals who may have had personally identifiable information compromised. Forensics decrypted all the files and has wiped the infected servers clean and removed all ransomware, restoring the Insured’s data.

Forensic work and breach counsel fees were covered under the Cyber policy. The total cost of the claim was $200,000.

– Social Engineering:

A Company’s accountant received an email from the Company, requesting an electronic funds transfer of $16,941 to a third party to facilitate a real estate transaction. The accountant complied with the request. The accountant received a further request for a wire transfer in the sum of $37,901. Due to the unusual nature of the request, the Insured’s financial consultant was contacted and it was discovered that both requests were fraudulent. The Cyber Insurer fully indemnified the loss of $16,941.

– Privacy Liability:

A national medical clinic, that provides a wide array of aged care services, was notified by a member of public that their Personally Identifiable Information (PII) had been breached. It was discovered that one of their Executive Assistants had taken the documents to her relative’s home to catch up on her work, which were then disposed of in the garbage.

The documents contained the names, addresses, social security numbers and dates of birth of 60 individuals who were applying to receive medical services. The Cyber Liability Policy responded to the matter.

– Network Extortion:

A Company discovered that one of its computer servers had been infected by a variant of the CrySIS ransomware virus (known as the Dharma Variant). The hacker demanded a payment of 6 bitcoins in order to provide a decryption key. The Company contacted its third-party IT company but they could not restore the data through backups. The Insurer’s IT Forensic experts took the view that the ransom should be paid. The decryption key was paid for & was received and most files were restored. The forensic experts were able to restore and decrypt the remaining files.