Cyber Insurance – Network Security and Privacy Protection

Australia has recently undergone the most significant changes to its privacy laws in over 25 years, which came into effect as of 12 March 2014, impacting all businesses that collect, use and store personal information and corporate data of their customers.

These new laws strengthen the investigative and regulatory powers of the Australian Information Commissioner who can now obtain enforceable undertakings and seek substantial Civil Penalties for privacy breaches.

It is integral that Australian companies review and customise their privacy policies to comply with these new laws.

For more information visit the OAIC website:
www.oaic.gov.au

The Challenges

Media headlines throughout Australia and Asia have been littered with examples of data breaches within various organisations. All businesses that keep sensitive data on employees, customers, patients, students, partners or other third parties can be liable for damages if that information is breached, regardless of the situation.

We should also be mindful of the impact from the loss of corporate data and information such as intellectual property and proprietary information, which in the hands of a competitor, or even an extortionist, can be severely damaging for a business.

The Honan Cyber Team

Our dedicated Cyber team consists of insurance and IT specialists that possess extensive experience in dealing with matters of security and privacy protection. We have an intimate knowledge of all relevant legislation and the impacts it will have on businesses, for IT and Cyber related exposures.

Cyber Insurance Provides Protection for the Following:

» Compensation to affected individuals
» Business interruption costs (including lost revenue from disruption to your network)
» Notification costs (PR, call centre and credit monitoring services)
» Investigations response and compliance expenses

There are additional concerns such as engagement of forensic experts, and defence of claims for misleading conduct, negligence, breach of contract, breach of confidence and interference of privacy.

Honan’s view is that Cyber Insurance is the final layer to the internal risk process. When internal processes are maintained and secure, Cyber Insurance can serve as an integral component of the risk framework and provide the ultimate catastrophe layer.