Why do I need Cyber Insurance?

Cybercrime is New Zealand's third most prevalent crime and costs the country up to $150m per annum, and could soon cost New Zealand an estimated half a billion dollars each year.

Regardless of how good your company IT systems are, there is no 100% guaranteed way to protect your data. What's more, a data breach will not only affect your business, it can negatively impact your clients and customers.

All it takes is for someone in your company to open the wrong email. An employee of a well known business did exactly that …read more.

Breaking down the costs of a cyber incident

A 2013 study of actual cyber claim payouts found that the median claim payout in cyber incidents was $242,500
The global cost of cyber crime is estimated to be between $300 billion to $1 trillion, greater than piracy or drug trafficking
It is estimated that the costs of data breaches are between $150–$200 per stolen record, according to legal specialist Mark Anderson, of DAC Beachcroft New Zealand. Often, there is a need for cross-border international response, which can impose greater legal costs upon the business

Your standard insurance does not cover you for cyber risk!

  Property General
Liability 
Crime/ Bond
/ Fidelity
Kidnap and
Ransom
D&O
Insurance 
Professional
Indmenity
Cyber
Insurance

1st Party Cyber Risks

Network / Business Interruption Loss · - - - - - ·
Cyber Extortion - - - · - - ·
Data Forensic Expenses and Costs to Restore / Recreate - - - - - - ·
Crisis Management (Notification costs / credit monitoring / reputational costs) - - - - - - ·
Denial of Service attack - - - - - - ·
Nework Security (Forensic, Hacker Theft, Data Recovery) - - · - - - ·

3rd Party Cyber Risks

Personal Information - · · - - · ·
Confidential and Proprietary business information - · · - - · ·
Media Liability / Social Media Liability - · · - - · ·
Defence Costs  - · · - · · ·
Fines and Penalties / Investigation - - - - · · ·

Tangible Offering - Vendors / Access to Experts

Public Relations Support - - - - - · ·
Legal Support - · · - · · ·
Forensic and IT Support  - - - - - - ·
Notification & Crisis Support  - - - - - - ·
Cover Provided · Cover Possible · No Coverage -