Whilst cyber insurance may be viewed as a somewhat new, unconventional cover, there is little doubt of its increasing importance in all forms of business as cyber-crime in Australia continues to grow at an alarming rate.

In fact, there are 148 cyber-crimes reported every day in Australia, costing SMEs an average of $276,000 per attack, whereas individuals are having to fork out an average of up to $3,696 per attack. In addition, Australia is now also the 5th most targeted country in the world for 'credential stuffing' attacks (i.e. stealing login/password and applying it to other websites you use).

Companies of all sizes carry enormous amounts of sensitive and highly valuable data online these days, yet the security required to keep it out of reach from hackers is often considerably underestimated.

Once a hacker gains access to your accounts, they can perform a wide range of illicit actions, ranging from data theft and customer identity fraud through to a complete account takeover.

If your organisation carries a traditional liability or Industrial Special Risks policy, chances are there will be little to no cover in relation to a cyber breach. These traditional policies will respond to bodily injury as well as property damage. Ultimately, a cyber attack will not cause either of these, and yet, can still cripple a business with similar ferocity.

A cyber policy is worded to fill the gaps that traditional policies do not protect. In particular, the policy seeks to cover direct loss, consequential loss and legal liability caused by cyber security breaches.

What Does It Cover?

A cyber attack or data breach can cost your business more than just money. It could threaten your intellectual property, put your customers’ personal information at risk and cause major damage to your company's reputation and brand.

Typically, a cyber insurance policy can help cover first & third party financial losses to your business, your customers, as well as other parties following a cyber security breach. However, cyber insurance policies vary in the benefits they provide, which is where we can assist in making sure your cyber policy is specifically suited to meet your business needs.

Below is a list of the type of cover your policy may include:

- Financial loss suffered as a result of a cyber attack
- Hiring negotiators and paying ransom
- Costs to recover or replace any business data or records
- Reputation damages resulting from a data breach, such as loss of third-party data
- Legal costs of defending claims
- Expenses for fines that may arise from investigation by a government regulator
- Costs associated with copyright infringement, defamation claims and misuse of certain types of intellectual property online.
- Prevention of future attacks, including the costs involved in alerting your customers of a security breach and monitoring of their credit details.

Who Does It Cover?

If your business has a website or deals with sensitive electronic data, then you are vulnerable to cyber hackers.

The top 3 targets for cyber criminals are email, social networks and website advertising.

Small to medium sized businesses (SMEs) need to be wary the most, with the finance, retail and gaming sectors particular hot spots for hackers. SMEs often have a lower security capacity due to smaller IT budgets and staff, making them prime targets.

CYBER FACTS:

- In 2017, the average cost of a data breach to an Australian company was a staggering $2.51 million.
- 60% of targeted cyber-attacks are aimed at small and medium-sized businesses.
- There were more than 100 million 'credential stuffing' attacks made in Australia in 2018.
- Australia is the 5th most targeted country in the world for credential stuffing attacks.
- 87% of consumers are still reusing their passwords online.

PERSONAL CYBER INSURANCE COVER (NEW)

With many Australians spending more time working from home than ever before, technology and staying ‘connected’ has become much more prominent, leaving our homes and families considerably more exposed to inherent cyber risks that most of us haven’t faced before.

To help combat this threat, Midland now offers a stand-alone personal cyber insurance policy to help protect against the growing threat of cyber-attacks on individuals while at home. Its purpose is to provide you and your family with a little added peace of mind and the confidence in knowing that you’re covered should you fall victim to a cyber-attack.

This Personal Cyber Insurance product covers you across a broad spectrum of cyber-crime events, and also includes attacks specifically related to social media. Its key features include:

• Malware
• Viruses
• Cyber espionage
• Denial of service attacks
• Cyber theft
• Identity theft
• Cyber-bullying
• Cyber-stalking
• Cyber-harassment