Cyber Security Insurance28 May 2014
When it comes to a data security breach or privacy loss, it isn’t a matter of if it will happen as when it will happen.
FINPAC Insurance Advisors can offer comprehensive protection from insurers that specialise in handling cyber risks, offer a full suite of integrated insurance solutions to help minimise gaps in coverage, and understand how to tailor coverage to your business.
The Information Age Is Changing Business Models And Insurance Needs
The information age allows us to collect more data, store more data and extract information around the globe 24/7.
This access to private and sometimes sensitive information can significantly increase a company’s vulnerability to cyber security threats, any of which can result in significant out-of-pocket and reputational costs, that can devastate the bottom line.
How prepared is your company for:
- Identity theft resulting from lost or stolen financial information, credit card numbers, tax file numbers or other confidential information?
- E-business interruption resulting from a security failure or internet virus?
- Costs related to privacy notification, crisis
- Management, and disaster recovery?
- Hacker malfeasance resulting in the% of confidential information or costly e-vandalism?
- A lawsuit stemming from a security failure or alleged technology error or omission that results in damages to customers?
- A lawsuit alleging intellectual property, trademark, or copyright infringement?
- A lawsuit alleging invasion of privacy, defamation, or product disparagement involving information residing as email; on laptops, smart phones, flash drives, or servers; or on the internet?
- A cyber extortion threat?
The Cost of Data Breach
The cost of data security breaches can be significant. In 2013, the average cost of data breach to an Australian organisation was US$4.1million and the average cost per compromised record was US$133*.
The culprit is often someone close to your business. A surprisingly large proportion of data breaches are carried out by insiders (over half by some estimates) or by business partners. A trusted employee could be the culprit.
The perpetrator could live halfway around the globe. To vandalise your building, a criminal must be on site. A hacker can operate from anywhere in the world. Organised cyber-crime rings operate worldwide 24/7.
Size doesn’t matter. Half of all companies that suffer data breaches have fewer than 1,000 employees. Any company can be hit.
Cyber criminals don’t care where they steal private information from: retailers, manufacturers, professional service providers, media and entertainment companies, and financial institutions are all likely to be targeted.
Cyber risk is steadily increasing. Data breaches affect hundreds of millions of records a year and reports of breaches continue to rise at a dramatic rate. For more information contact your FINPAC Insurance Advisor.
* Ponemon Institute’s 2013 Cost of a Data Breach