Although Australia has few cyber-attacks compared to other countries, the government created ways for insurers to reduce their exposure to claims. Insurers will now raise rates for businesses lacking security measures and offer far less comprehensive coverage. Companies that don't secure their computers will see their coverage cut by one hundred to two hundred per cent or lose their policies altogether.
Is Business Cyber Insurance Mandatory for Australian Businesses?
No, cyber insurance in Australia is not mandatory. However, any business not taking sufficient measures to protect itself from cyber-attacks can find itself liable for hefty fines. If a company does not secure its information correctly, the government can hit it with penalties of up to four per cent of its total revenue.
The government has also indicated that it will force companies to contribute to a new national cyber insurance scheme. The program will offer basic coverage to companies that don't already have insurance. This way, the government can help fill the insurance gap while Australian businesses protect themselves.
What Types of Business Cyber Insurance Is Available in Australia?
In Australia, businesses can choose from four distinct types of cyber policies. Two are geared towards individual companies: the All Risks Policy, designed to protect IP and brand, and the Australian Cyber Security Policy, a less expensive policy covering the damage caused by a cyber attack. The other two are offered to organisations looking to lessen their risk to cybercrime: the Cyber Essentials self-assessment and the Cyber Essentials Plus certification.
Individual Cyber Policies
Australia's All Risks Policy is available for purchase by single businesses. The All Risks Policy allows Australian companies to protect their IP, brand, and reputation from cybercrime, hacking, and data theft. Additionally, it covers sensitive information that may be a target of a cyber-attack.
Corporate Cyber Policies
Businesses that want to focus on their cyber security but don't want to pay for an All Risks Policy can purchase the Cyber Security Policy. This is Australia's most popular cyber insurance product. It covers various possible attacks, offering protection against cybercrime and hacking.
The Cyber Essentials self-assessment is another example of corporate cyber insurance. Businesses can certify that they have the same security measures as Australia's government and government contractors by undergoing an independent assessment. The evaluation covers the following six areas:
Security policies and controls, including asset protection and the handling of information and information systems
Information assurance, including two-factor authentication and strong passwords
Asset disposal and management, including data cleaning and the removal of inactive storage devices
Physical security, including access controls and prevention of physical tampering
Information security incident management, including detection and monitoring of security incidents and the handling of breaches
Business Continuity, including a business continuity policy and the securing of backup data
Why You Need Cyber Insurance
Business cyber insurance is crucial for companies wanting to stay afloat in a world where cybercriminals are prevalent. By protecting your company's reputation, business cyber insurance also protects your ability to attract top talent and secure new business deals. The government has made it clear that cyber insurance will become more and more necessary for staying in business.
Conclusion
Cyber insurance is quickly becoming a requirement for staying in business in Australia. Cyber insurance is a unique type of insurance that covers the costs of a cyber attack on a company. Because no two cyber-attacks are alike, cyber insurance is tailored to each business's unique needs.
New Wave Insurance is an Australian insurance specialist, helping clients find the right insurance for their assets, business and indemnity. We've helped thousands of individuals and small businesses find the right insurance whatever their circumstances. If your company has a website or electronic records, you’re vulnerable to cyber attacks, potentially costing your business money and putting customers’ personal information at risk. It’s time to protect your business and your customers with cyber protection insurance. Book a free 15-minute insurance consult to know more about your options.