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Cyber Insurance Claim Example
A Brisbane based business was recently the subject of a cyber attack where the hackers made numerous extortion threats and stole sensitive data from them. The business was completely unprepared for the attack, Acting Assistant Brian Hay from the State Crime Command said “We are strongly urging business to ensure their computer systems are secure and protected from hackers.”
The attack highlights the importance of SME’s purchasing a Cyber Liability & Privacy Protection policy which provides the following key elements of cover:
- Third Party Claims - the Insured's liability to third parties from a failure to keep data secure, such as claims for compensation by third parties, investigations, defence costs and fines and penalties from breaching the Privacy Act.
- First Party Costs - reimburses the Insured for the costs they would incur to respond to a breach, such as IT Forensic Costs, Credit Monitoring Costs, Public Relations Expenses and Cyber Extortion Costs (including ransom payments to hackers).
Business Interruption - provides reimbursement for the Insured's loss of profits resulting from the breach, as well as any additional necessary expenses it may need to incur to continue business as usual.