Cyber Risk Insurance
7 May 2014

Is your data at risk? With recent data breaches hitting the headlines, loss of personal & corporate data has serious ramifications that could change the way business is carried out all over the world.


 

More People are at Risk

 

Virtually all companies handle data and personal corporate information on a daily basis, whether it be identity card numbers and corresponding profiles of employees, credit card information, sensitive demographic information about customers, information on budgets, customer lists, share prospectus or marketing plans.  The same companies face very real liabilities if such data falls into the wrong hands or enters the public domain.

 

 Cyber Breaches in New Zealand that made the headlines

 

January 2011

  • Ex Telecom staff were reportedly able to access Telecom’s database after they had moved to rival Slingshot, obtaining the personal information and billing details of Telecom customers in an attempt to “win” customers over.

 

December 2011

  • Waikato DHB reportedly had hundreds of online job applications stolen by hacker.

 

March 2012

  • ACC reportedly accidently leaked the personal and claim information of 9,000 claimants, which in turn was allegedly “extorted” by the receiver in a bid for monetary gain.

 

 

The Cost of Data Breaches

Research has shown that data breach costs tend to be linear; the more records compromised the greater the costs.

 

Expenses associated with a large data breach include:

 

  • Lost Business
  • Fines & Penalties
  • Lost Productivity
  • Additional Audit & Security Requirements
  • System Repair

 

 

POLICY COVERAGE

 

Cyber Liability Insurance

Sums you become legally obliged to pay for any Third Party financial loss arising directly from a hacking attack or virus that has emanated from or passed through your computer systems or a cloud computing provider’s system.

 

 

Privacy Liability

Sums you become legally obliged to pay arising our of security breach which results in:

 

  • an actual or suspected breach of any personally identifiable information including credit card information or personal healthcare information.
  • failure to maintain the confidentiality of any data pertaining to an employee
  • breach of any part of your websites privacy statement

 

 

System Damage

  • in retrieving, restoring or replacing any of your computer programs and any other data

 

 

Business Interruption

Provides cover for reimbursement for your reduction in profit during a system outage period as a direct result of a cyber peril.

 

 

Cyber Crime

  • Computer Crime
  •  Identity Theft
  •  Cyber Threats and Extortion

 

 

Multimedia Liability & Advertising Injury

 

 

Data Cyber Breaches are the new real threat to your business.
 
We recommend that you contact your Broker to obtain more information or a Premium Quotation.
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