The risk which instantly stops your business

19th November 2015

At Queenscorp we are witnessing a rapidly increasing number of attacks on IT systems which immediately stops business operations. This is estimated to be costing Australian business $2 billion per annum and rising.

Hacktivism, Extortion & Theft of Data means that all companies, both SME & Corporate are at risk!

It has reached the point where we strongly recommend every business implement a risk review of their IT system and connectivity. Insurance protection is available but ranks second to robust security and a comprehensive risk management plan.

One of the biggest concerns is the false sense of security most companies have of their IT security – if the Pentagon, Passenger Carrying Aircraft, Offshore Oil Rigs and Ships at Sea can be hacked, anyone connected to the internet is a potential target.

Some immediate steps the cyber insurers recommend are:

  1. 1. Use a different IT firm to your normal supplier to test and audit the security of your IT system as soon as possible.
  2. Develop a crisis response plan and then test it.
  3. If you have a vulnerability arising from systems controlling manufacturing processes, attempt to isolate these systems from the rest of your IT structure by using dedicated and remote servers.
  4. The most common means of entry into systems is via emails with attachments opened unwittingly by employees containing viruses. Develop an email protocol which involves isolation of email traffic until proven free of viruses and train staff to only open appropriate messages.
  5. If you are “hacked”, immediately disconnect and close down all IT systems and call your support team. Implement the crisis plan which should include processes to continue business as far as possible and notify Queenscorp if insurance has been effected.

Biggest Threat

Most Cyber insurance purchased is Cyber Liability – that is, covering the exposure to damages from passing on a virus to third parties such as customers and suppliers. Often the biggest threat is loss of revenue particularly if manufacturing processes are impacted, technical or any other work is not able to be recorded or invoiced.

We advocate Broadform coverage to protect your business which may include:

RiskDetails
PRIVACY & DATA BREACH Defence costs and damages for which the Insured or outsourced Service Provider is liable, arising from a loss of data.
BUSINESS INTERRUPTION & RESTORATION COSTS COVER Loss of business income (and restoration costs) caused by a targeted attack against the company’s computer system.
NETWORK SECURITY CLAIMS COVER Defence costs and damages for which the Insured is liable, arising from a targeted cyber attack
MEDIA LIABILITY CLAIMS COVER  Defence costs and damages for which the Insured is liable, arising from the publication or broadcasting of digital media content
REGULATORY COSTS COVER Defence costs for a claim by a regulator arising out of the loss of data
REGULATORY FINES AND PENALITIES COVER Monetary fines and penalties levied by regulators (to the extent that they are insurable) arising from a loss of data
NOTIFICATION COSTS In accordance with legal and regulatory requirements following a loss of data
RESPONSE COSTS Fees & expenses for:
  • Forensic investigation following a loss of data
  • Identifying and preserving lost data
  • Advice on legal and regulatory duties
  • Determining the extent of indemnification obligations in contracts with third party service providers
  • Credit monitoring services and other remedial actions required after a loss of data
HACK THEFT COVER Indemnity for stolen finds due to malicious activities of a third party
CYBER EXTORTION COVER Indemnity for the resolution of a credible threat to compromise the Insured’s data or systems
E-PAYMENTS Defence costs, damages and contractual penalties in respect of a breach of Payment Card Industry Data security Standards
CRISIS COMMUNICATION COVER Public relations expenses of a panel of experts to mitigate any negative publicity from a covered event
CONSULTANT SERVICES COVER The expenses of an IT expert to determine the amount and extent of a loss covered under this policy

Insurers provide a 24/7 “Hotline” service to assist recovery of impaired systems by experts in cyberattacks. The annual global cost of Cyber Crime is estimated by the Allianz Group to be $445 billion and growing rapidly making it the “new” risk to be managed.

Contact Michael Parker or Russell Neville at Queenscorp for further discussions or to arrange a premium quotation for coverage matching your specific needs.

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(07) 4638 1004

 

Toowoomba

PO Box 1379,
110 Herries Street,
Toowoomba Qld 4350

 

Brisbane

Suite 201, Toowong Tower,
9 Sherwood Rd
Toowong Qld 4066