About Cyber Liability Insurance
Cyber liability insurance is designed to protect businesses from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Risks of this nature are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products.
Most policies will include first-party and third-party coverage. First-party coverage will protect you from direct losses to your business. While third-party coverage can protect you from claims made against your business as a result of a cyber event. For example, it can cover the legal costs that arise from a privacy breaches where customer data is compromised.
Why do you need cyber liability cover?
As recently seen with the Medibank breach, cybercriminals are becoming increasingly sophisticated, and businesses can be held liable for financial losses, damage to reputation and other costs incurred as a result of a cyber-attack. Cyber insurance can help to cover these costs, so it’s important to ensure that you have the right policy in place to protect your business and reduce the impact on your reputation.
