Cyber

Every Australian business, from local retailers to nationwide enterprises, depends on digital systems and data to operate. Yet, with that reliance comes a rising wave of cybersecurity threats — from phishing and ransomware to data breaches and social-engineering scams. That’s why cyber insurance has become an essential layer of protection. But many business owners are still unsure about what’s actually covered and, more importantly, what’s not. In this guide, we break down the essentials of cyber insurance in Australia — helping you understand how it works, where exclusions apply, and how to strengthen your digital risk management strategy. What Is Cyber Insurance and Why It Matters Cyber insurance, sometimes referred to as cyber essentials insurance, helps businesses recover financially from cyber incidents such as data breaches, ransomware attacks, or network interruptions. It covers both first-party losses (like data recovery or business interruption) and third-party liabilities (such as privacy breaches and legal defence). In a landscape where cybersecurity incidents in Australia are rising every quarter, this protection has shifted from optional to essential. The Australian Cyber Security Centre (ACSC) reported over 94,000 cybercrime reports in the past year — a 23% increase year-on-year. Cyber Insurance Coverage Explained 1. Data Breach Response Covers investigation, data recovery, customer notification, and PR costs after a data breach. 2. Ransomware and Extortion Reimburses ransom payments, forensic costs, and system restoration following ransomware or extortion attacks. 3. Business Interruption Covers income loss and operational expenses due to system downtime caused by a cyber incident. 4. Legal and Regulatory Defence Provides cover for privacy law breaches, regulatory fines, and investigations under laws such as the Privacy Act 1988 (Cth) and the Notifiable Data Breaches scheme. 5. Third-Party Liability Protects your business if a customer, supplier, or partner sues for damages arising from compromised data or service disruption. 6. Incident Response and Crisis Management Includes access to cyber-response experts for forensics, containment, and system recovery, ensuring rapid mitigation after an attack. What Cyber Insurance Does Not Cover Not all cyber risks are insurable. Understanding cyber insurance exclusions helps you avoid false assumptions about your protection limits. Common Exclusions Include: – Unreported incidents: Failing to notify your insurer promptly can void your claim. – Poor security hygiene: Claims may be denied if you lack basic security controls like firewalls or MFA. – Employee negligence: Losses from untrained staff clicking malicious links may be excluded without proper policies in place. – Prior-known vulnerabilities: Attacks exploiting known but unfixed software issues are often excluded. – War or state-sponsored cyberattacks: Many policies exclude incidents linked to government or military actors. – Reputational loss: While some PR costs are covered, loss of future revenue due to reputational harm usually isn’t. Tip: Always review your policy wording carefully — cyber insurance does not cover every digital risk, and exclusions differ between insurers. Common Cybersecurity Threats Facing Australian Businesses Australian SMEs face a growing variety of IT security threats that can bypass even well-protected systems. Top Threats Include: Threat Type Description Potential Impact Phishing & Social Engineering Deceptive emails trick employees into sharing credentials or transferring money. Financial loss, data theft Ransomware Attacks Hackers encrypt data and demand payment for release. Downtime, extortion costs Business Email Compromise (BEC) Impersonation of executives to authorise fraudulent transfers. Major financial loss Malware & Viruses Malicious software infiltrates networks to steal or corrupt data. Data loss, privacy breach Insider Threats Staff misuse or leak confidential information. Reputational damage Supply Chain Breaches Vendors or third-party software become compromised. Operational disruption The surge in recent cyber attacks in Australia highlights how small vulnerabilities from outdated software to weak passwords can trigger large-scale damage. Managing IT and Security Risks Effectively Even with insurance, prevention remains your first line of defence. Implementing cybersecurity risk management and security risk control strategies can reduce premiums and downtime. Best-Practice Risk Controls: Use multi-factor authentication (MFA) for all accounts. Back up critical data off-site or in secure cloud storage. Conduct regular penetration testing and vulnerability scans. Provide staff training on phishing and password hygiene. Patch and update software frequently. Create a cyber incident response plan for emergencies. Engage a qualified broker to assess your policy’s coverage gaps. Effective risk control strengthens your insurer’s confidence — and your business resilience. How to Choose the Right Cyber Insurance Policy? When comparing policies, look beyond the premium. Consider: – Coverage breadth: Does it include data breaches, ransomware, and third-party claims? – Policy limits: Are payout caps high enough to cover your potential exposure? – Excess and waiting periods: Know your responsibilities before coverage starts. – Incident response support: Some insurers offer 24/7 response teams — crucial during live attacks. – Industry-specific risks: For example, healthcare and finance face stricter data-privacy obligations. Protect Your Business With Global Insurance Solutions At Global Insurance Solutions, we help Australian businesses safeguard their digital assets with tailored cyber insurance solutions. Our experts assess your IT security risks, identify policy exclusions, and connect you with leading insurers that provide the most comprehensive protection for your industry. Whether you run an accounting firm, a healthcare practice, or an e-commerce business, our brokers ensure your cover matches your cyber exposure without hidden gaps or unnecessary costs. Don’t wait for a breach to expose your vulnerabilities. 📞 Call 1300 710 665 Explore: IT Liability Insurance | Business Insurance | Professional Indemnity Insurance | D & O Insurance | Management Liability Insurance Also Read : Cyber Incident Response Guide | Startup Insurance Guide | Deepfake Cyber Risks | NFTs in Insurance Frequently Asked Questions (FAQs) 1. What are the 7 types of cybersecurity threats? The seven main threats include phishing, ransomware, malware, insider attacks, data breaches, denial-of-service attacks, and social engineering scams — all of which can disrupt or damage your business systems. 2. What is 90% of cyber attacks? Around 90% of cyber attacks begin with human error, often through phishing emails or weak passwords — making staff training and strong access controls vital. 3. What are common cyber insurance claims? The most common claims include ransomware attacks,

The Alarming Rise of Cyber Risks in Healthcare Australia’s healthcare sector is now one of the top targets for cybercriminals. Patient data, research findings, and billing records are goldmines for attackers, and the industry’s heavy reliance on continuous operations makes it an easy mark. When systems go down, patient care halts, investigations are triggered, and the recovery process can cost millions. What the Figures Show? Recent reports paint a concerning picture: Average cost per breach: AUD $10.93 million (IBM, 2023) — nearly twice that of the finance sector. Breach frequency: Between July 2023 and June 2024, healthcare reported more cyber incidents than any other non-government sector. In early 2024 alone: 102 breaches were reported — the highest of any industry. Personal data exposure: 9 in 10 breaches involved sensitive information such as patient or financial data. These statistics confirm one thing: cyber threats in healthcare aren’t hypothetical—they’re happening right now. Generative AI: Both Tool and Threat Artificial intelligence is reshaping both sides of the cybersecurity battle. Attackers use AI-powered phishing, deepfakes, and automated vulnerability scans to infiltrate systems faster than ever. Meanwhile, healthcare organisations are leveraging AI for threat detection, anomaly monitoring, and faster response times. However, this arms race cuts both ways. Holocron Cyber recorded a 63% rise in AI-driven ransomware hitting Australian medical practices in just three months. CyberCX warned of a 71% year-on-year global surge in healthcare attacks, driven by unchecked AI innovation. Without strong oversight and updated controls, even advanced AI defences can become double-edged swords. Which Healthcare SMEs Are Most at Risk? Contrary to popular belief, it’s not the big hospitals that are hit hardest. Smaller healthcare SMEs like GP clinics, physiotherapy practices, consultancies, and aged care homes face up to 10 times higher attack rates. Why? Outdated technology: Many operate on old or unsupported systems. Limited IT resources: Smaller budgets mean slower patching and weaker monitoring. High data sensitivity: Even a single patient record can be sold multiple times on the dark web. Aged care providers, in particular, have faced a rise in extortion-based cyber incidents and data leaks involving personal care records, according to Australian Ageing Agenda. The Cost and Downtime Impact The financial and operational fallout of ransomware attacks in Australian healthcare is staggering: Ransomware incidents hit a four-year record high. Only 20% of organisations recovered within a week. Average downtime: 34 days before full restoration. Service interruptions: 73% of attacks delayed or disrupted patient care. Compliance costs: Smaller healthcare providers spent more than $120 million in the past year to meet data security requirements. The ongoing challenge? Business email compromise (BEC). CyberCX found that three-quarters of BEC breaches bypassed MFA through session hijacking — proving even secure setups can be compromised if not actively monitored. How Healthcare SMEs Can Strengthen Their Cyber Defences To stay ahead of evolving threats, healthcare organisations should act on the following insurer-endorsed steps: 1. Update Legacy Systems Replace or patch outdated software, close known vulnerabilities, and phase out unsupported applications. 2. Secure Authentication Use multi-factor authentication (MFA), monitor for session hijacks, and restrict staff access to sensitive information. 3. Build Staff Awareness Regular phishing simulations and digital hygiene training reduce the risk of human error — the top cause of cyber breaches. 4. Backup and Recovery Planning Schedule automatic, encrypted backups. Test recovery drills regularly and maintain an off-site or cloud-based copy. 5. Review Cyber Insurance Cover Check whether your insurance covers modern threats such as AI-assisted attacks, ransomware extortion, regulatory fines, and business downtime. Why It Matters? A quarter of Australian hospitals still lack robust cybersecurity protocols, leaving not only patients, but also clinicians and suppliers, vulnerable to fraud and identity theft. While 63% of data breaches affected 100 or fewer people, one incident reported affected over 10 million Australians. This is the second breach recorded to affect more than 10 million Australians and is the highest number of individuals affected by a breach since the NDB scheme came into effect. Source : www.oaic.gov.au $4.2 million for failing to take reasonable steps to protect the personal data on Medlab Pathology’s IT systems. Source : www.thelawyermag.com/au Failing to act on cyber resilience isn’t just a financial risk, it’s a reputational one. Cover That Keeps Pace with Cyber Threats At Global Insurance Solutions, we help Australian healthcare providers safeguard their operations from the growing wave of cybercrime. Our team reviews your current coverage, identifies hidden gaps, and ensures your business is financially protected against the next cyber event, no matter how advanced the attack. Learn About Cyber Insurance Cyber risks in healthcare aren’t a future problem — they’re happening now. Stop risking million-dollar penalties. Secure your compliance posture and sensitive patient data. Schedule your defensive strategy review at globalinsurancesolutions.com.au or dial 1300 710 665 now. Frequently Asked Questions (FAQs) 1. Why is the healthcare industry such a target for cyber attacks? Healthcare organisations hold highly sensitive data from patient records and billing information to medical research. This makes them prime targets for cybercriminals who know the industry cannot afford downtime or service interruptions. 2. What is the most common cyber threat in healthcare right now? Ransomware remains the leading threat, followed by phishing and business email compromise (BEC). These attacks often exploit outdated systems and untrained staff to gain access to networks. 3. How does generative AI increase cyber risk in healthcare? Attackers are now using AI to automate phishing emails, create convincing deepfakes, and identify weak points in systems. Without robust controls, AI can make breaches faster and harder to detect. 4. Are small healthcare practices really at risk of cyber attacks? Yes. GP clinics, physiotherapy practices, and aged care homes face up to ten times more attacks than hospitals because of outdated systems and limited IT budgets. 5. How long does it take to recover from a ransomware attack? Industry data shows only one in five healthcare organisations recover within a week. Most experience at least 30 days of downtime, causing major disruption to patient care and operations. 6. How does a cyber breach

What Is a Ransomware Attack? A ransomware attack is a type of cybercrime where malicious software locks or encrypts a company’s systems and demands payment (the “ransom”) to restore access. In Australia, these incidents are increasing across sectors—from small retail stores to large logistics firms. According to the Australian Cyber Security Centre (ACSC), ransomware remains one of the most reported attack types, often leading to 48–72 hours of business downtime and significant data loss. Ransomware protection now goes beyond antivirus software. Businesses need a multi-layered defence that includes cyber insurance to mitigate financial and operational loss. How Ransomware Insurance Protects Your Business? Ransomware insurance—a component of broader cyber insurance coverage helps businesses recover financially and operationally after an attack. Here’s how it works: Coverage Area What It Includes Ransom Payments Covers the cost of ransom negotiation and, in some cases, approved payments. Data Recovery Pays for system restoration, decryption, and data retrieval. Forensic Investigation Funds experts to identify the breach source and prevent future attacks. Business Interruption Compensates for lost revenue during downtime. Public Relations Support Covers media management and client communication costs. Cyber Attack Insurance Explained: Does It Really Pay Out? Many business owners question whether cyber attack insurance actually delivers when it matters. The truth is, payouts depend on compliance. Insurers assess whether your business maintained adequate information security protocols, such as: Multi-factor authentication (MFA) Regular data backups Endpoint protection Staff training on phishing and social engineering When these controls are in place, payouts can cover everything from IT forensics to system rebuilding. Without them, claim denials become more likely. What Happens If You’re Hacked Without Cyber Insurance? Without cyber insurance, Australian SMEs face enormous recovery costs. Typical post-attack expenses: Forensic investigation: $30,000–$80,000 Legal and privacy notification costs: $15,000–$50,000 Lost revenue due to downtime: $10,000–$100,000+ Ransom payments: $50,000–$500,000 A 48-hour downtime alone can cripple a small business’s cash flow. Worse still, reputational damage may take months to repair. Recent events, such as the cyberattack on a superannuation fund, highlight that no industry is immune. Whether you run an IT firm, logistics company, or professional services business, cyber attacks can strike at any time. Source: https://moneysmart.gov.au/media-centre/news-super-funds-impacted-by-cyber-incident Case Study: How Cyber Insurance Saved an Aussie Business from Collapse A Melbourne-based retail chain experienced a ransomware breach that encrypted its entire point-of-sale system. Within hours, all outlets were offline. Here’s how cyber insurance made the difference: Immediate response: The insurer’s 24/7 incident team mobilised forensic experts. Data restoration: Backups were decrypted within 36 hours. Revenue protection: Business interruption cover compensated the lost turnover. Public reassurance: A PR firm managed customer communication and media releases. The company resumed operations within 48 hours, avoiding a potential $300,000 loss. This real-world case demonstrates how ransomware coverage is not just about money—it’s about survival. Cybersecurity Best Practices to Prevent Ransomware Insurance is the safety net, but prevention is still the best defence. Implement these cybersecurity best practices to minimise exposure: Regularly back up data to secure, offline storage. Update systems and software to patch vulnerabilities. Use multi-factor authentication (MFA) on all business accounts. Train employees to recognise phishing emails and suspicious links. Segment networks so malware can’t spread easily. Test your incident response plan at least twice a year. These computer security tips help strengthen your defence posture—and can even lower your cyber insurance premiums. The Future: AI-Powered Cyber Attacks & Australia’s Readiness The next wave of cyber threats is being powered by artificial intelligence. Attackers now use AI to craft hyper-realistic phishing emails, deepfake voice calls, and automated intrusion attempts. Australian businesses, especially SMEs and superannuation funds, are becoming targets of AI-powered cyber attacks due to weaker internal defences. Future-ready businesses combine cybersecurity best practices with comprehensive cyber attack insurance to create a dual-layer protection strategy—prevention and recovery. Final Thoughts Ransomware and cyber attacks are no longer rare IT problems; they’re financial crises in disguise. A 48-hour downtime can cause weeks of lost productivity and thousands in revenue loss. Cyber insurance bridges the gap between system failure and financial recovery. When every hour counts, having the right ransomware coverage ensures your business doesn’t just survive, it bounces back stronger. Also Read: The Impact of Deepfakes on Australian Cyber Threats | Essential Insurance for Tech Startups | Get your cyber incident response plan | The Future of Insurance Technology Important notice This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers. This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product. Information is current as at the date the article is written as specified within it but is subject to change. Global Insurance Solutions Pty Ltd make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Global Insurance Solutions Pty Ltd.

Introduction: The New Face of Cybercrime Fraud has always been a challenge in Australia, but a new threat is emerging—deepfakes. Driven by artificial intelligence, deepfakes produce hyper-realistic video and audio forgeries that can convincingly mimic real people. For Australians, this represents a new frontier in cybercrime that could impact both businesses and individuals, changing the way scams are carried out and detected. Before diving further into this blog, if you haven’t arranged cyber risk insurance, now’s the time. Explore comprehensive cyber risk insurance cover today. From Photoshop to Deepfakes: How Digital Deception Evolved Fraud isn’t new; scammers have long relied on forged paperwork, staged accidents, or doctored images. But deepfake technology has raised the stakes. With AI, criminals can fabricate accident “evidence”, imitate your identity, or even generate fake audio that sounds like you approving a transaction. These scams are far more convincing, harder to detect, and can threaten both your insurance claims and personal data security. What Makes Deepfakes So Convincing? Deepfakes look and sound alarmingly real. With AI, fraudsters can replicate voices, facial expressions, and subtle behaviours. For you, that means scammers only need some stolen personal information and basic software to create a fake “you” filing claims, making calls, or even submitting video evidence. Aussie victim loses $400,000 after trusting deepfake ads A resident of Hunter Valley fell prey to a deepfake scam that featured manipulated footage of celebrities like Elon Musk and Prime Minister Anthony Albanese. The victim was lured via a realistic ad and ultimately lost $400,000 before authorities issued a public warning. Source: news.com.au Why Traditional Cybersecurity Measures Are Falling Short Most fraud detection tools were built to catch forged paperwork or mismatched data. They weren’t designed to detect manipulated voices or videos. That means when you submit claims digitally, older verification methods like video calls or voice ID can be tricked. This makes cyber insurance and strong personal security measures more important than ever. Red Flags: Spotting Deepfakes Before It’s Too Late Even though they look convincing, deepfakes often reveal small flaws. You can protect yourself by noticing: Trust your instincts—if something feels off, it probably is. The Human Factor: Psychological Manipulation in Deepfakes Deepfakes aren’t just about technology; they exploit human trust. Seeing a realistic video or hearing a distressed voice can trick you into lowering your guard. That’s why slowing down, double-checking communications, and questioning unusual requests is critical. Business Risks for Everyday Australians If you’re running a business, the risks are wide-ranging: Cyber insurance helps cover the financial and legal fallout from these risks. AI vs AI: Fighting Fire with Fire The good news? AI can also be used to detect deepfakes. Insurers are beginning to adopt systems that scan for digital manipulation in claims. As a customer, choosing an insurer with strong cyber protections and ensuring you have cyber insurance adds another layer of defence. Government and Legal Responses in Australia While Australia is strengthening cybercrime laws, deepfake-specific regulations are still catching up. Until more robust frameworks are in place, individuals and businesses need to take proactive steps, including securing cyber insurance to protect against scams and fraud. How Policyholders Can Protect Themselves You can lower your risk by: Building a Digitally Aware Mindset Technology alone isn’t enough. As a policyholder, it’s essential to build digital awareness into your habits. Training your staff (if you run a business) or simply staying informed helps you recognise and respond to threats before they escalate. The Road Ahead: Staying Ahead of the Curve Deepfake scams are just getting started. As they become more advanced, staying ahead means investing in the right protections, including cyber insurance, staff training, and digital security practices. At Global Insurance Solutions, we arrange tailored cyber risk insurance designed to protect Australian businesses against emerging threats like deepfake fraud, data breaches, and social engineering attacks. Our expertise in cyber risk management has earned us multiple industry accolades — including Top Insurance Broker 2024, Rising Star Broker 2022, and the Small Brokerage of the Year Excellence Award 2025 — recognising our commitment to delivering innovative, client-focused solutions in a rapidly evolving digital landscape. Conclusion: Staying One Step Ahead in the Age of Synthetic Media Deepfakes mark a major shift in the way fraud can impact Australians. While insurers are working on advanced detection, it’s up to you to ensure you’re protected. Cyber insurance provides a safety net against these modern risks, giving you confidence that if scams target you or your business, you won’t be left carrying the financial burden alone. We’ve also explored other cyber risks and how insurance helps safeguard your business against a wide range of digital threats. Read: Comprehensive insurance guide for tech startups | Cyber Attack Response Strategy Frequently Asked Questions What is deepfake insurance fraud, and how can insurers protect themselves? Deepfake insurance fraud occurs when scammers use AI-generated video, audio or images to fabricate evidence and submit false insurance claims. For example, a fraudster might produce a video showing a staged car accident that never happened, or imitate a policyholder’s voice to approve a false payout.To protect themselves, insurers are now adopting AI-powered detection systems that scan claims for digital manipulation, training claims teams to recognise deepfake indicators, and tightening claim verification protocols such as multi-factor authentication and in-person assessments. Are current insurance policies covering deepfake losses in Australia? Most traditional insurance policies in Australia do not specifically mention deepfake-related losses, creating a legal grey area. While some cyber insurance policies may cover losses from social engineering, phishing or impersonation, they may not explicitly include synthetic media fraud. Policyholders should review their cyber insurance wording and seek endorsements or clarifications from their broker to ensure deepfake-related scams are covered. How can deepfake technology be used to fake insurance claims? Deepfakes can be used to create convincing false evidence to support fraudulent claims, such as: Because these forgeries can appear authentic, they can slip past traditional claim checks unless advanced detection is in place. How can AI tools detect deepfakes in insurance claims?

In Australia’s fast-moving tech industry, innovation moves quickly—but so can financial and legal risk. Whether you’re building the next breakthrough app, managing client data, or developing custom software, one small error can snowball into a costly mistake. That’s why tech startups need to prioritise their risk protection strategies, especially insurance. At Global Insurance Solutions, we understand how one oversight, be it a coding bug, data breach, or project delay, can jeopardise your startup’s future. This blog explores the essential insurance coverage tech startups need to safeguard their growth. Why Insurance Is Non-Negotiable for Tech Startups Financial and Legal Risks in the Tech Space Tech businesses, particularly startups, face a unique blend of operational and legal risks: Without the right coverage, such incidents can lead to expensive claims and long-term reputational damage. Core Insurance Covers Every Tech Startup’s Needs 1. IT Liability Insurance IT liability insurance helps protect against claims stemming from negligence, coding errors, system failure, or inaccurate advice provided to clients. This cover is essential for IT consultants, software developers, and SaaS businesses. 2. Cyber Insurance Cyber threats are on the rise, and tech startups are prime targets. Cyber insurance offers protection against data breaches, ransomware attacks, and associated legal and notification costs. 3. Technology Business Insurance An umbrella cover that bundles public liability, professional indemnity, and cyber cover to provide all-around protection for IT and software businesses. 4. Small Business Insurance Even small tech startups need big protections. This policy provides comprehensive general business coverage, including fire, theft, and public liability protection. Real-World Risks: Claims Commonly Faced by Tech Startups Startups are often too lean to absorb these shocks without cover. Consequences of Not Having Insurance Legal & Financial Chaos That Follows a Single Misstep Insurance is not just a safety net—it’s a business survival tool. Risk Management Tips for Tech Entrepreneurs Investing in the right cover now can prevent massive losses later. Tailored Cover for Your Startup by Global Insurance Solutions Every startup is unique. At Global Insurance Solutions, we offer personalised insurance advice tailored to tech founders, software developers, and IT contractors. We help protect your startup with the right mix of: Explore your options for general insurance with our experienced brokers. Need Help Choosing the Right Insurance for Your Startup? Don’t leave your startup exposed. Book a free consultation with a broker at Global Insurance Solutions to understand your insurance needs and get a tailored policy quote. Also Read: How to prepare for a cyber attack FAQs for Tech Startup 1. What insurance does a tech startup need in Australia? Ans 1. Most startups need IT liability insurance, professional indemnity, cyber insurance, and general business cover, depending on their services and client risk. 2. Why is professional indemnity important for software developers? Ans 2. It protects you from claims of negligence, project failures, and intellectual property breaches. 3. Does cyber insurance cover client data breaches? Ans 3. Yes. It typically includes legal costs, customer notifications, forensic investigation, and recovery. 4. Can I get one policy for all risks? Ans 4. Yes, technology business insurance can bundle multiple covers to protect your operations comprehensively. Important notice This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers. This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers. This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product. Information is current as at the date the article is written as specified within it but is subject to change. Global Insurance Solutions Pty Ltd make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Global Insurance Solutions Pty Ltd.

In today’s digitally connected world, cyber threats pose significant risks to Australian businesses. Whether you’re a small enterprise or a large corporation, having a robust cyber incident response plan is essential. At Global Insurance Solutions, we recognise the importance of preparedness and protecting your business from cyber vulnerabilities. Understanding a Cyber Incident Response Plan A cyber incident response plan is a structured strategy detailing the steps your business will take when responding to a cyber attack or security breach. It encompasses guidelines, responsibilities, communication protocols, and recovery processes, ensuring minimal disruption and swift resolution. Why Does Your Business Need One? Cyber incidents can severely disrupt operations, damage reputation, and result in significant financial loss. A well-prepared cyber security incident response plan can significantly mitigate these risks, reducing downtime and financial damage. Essential Steps in a Cyber Incident Response Plan Creating a robust response plan involves structured steps and clear processes: Step 1: Preparation Developing a comprehensive cyber incident response plan checklist is critical. Your preparation should involve: Defining clear roles and responsibilities. Training your team on cyber security practices. Implementing regular backups and system security measures. Step 2: Identification Quickly identifying a breach minimises damage. Utilise monitoring tools and ensure staff are trained to recognise and report suspicious activities immediately. Step 3: Containment Containing a cyber incident prevents it from spreading further. Strategies include isolating affected systems and restricting network access. Step 4: Eradication Eliminate the root cause of the breach by removing malicious software, patching vulnerabilities, and updating security measures to prevent recurrence. Step 5: Recovery Restoring operations quickly is critical. Employ your backups, verify system integrity, and resume normal business activities gradually, ensuring all systems are secure. Step 6: Review and Communication A cyber incident response communication plan ensures transparent and effective communication internally and externally. Review your response actions, identify areas for improvement, and adjust your plan accordingly. Tools to Enhance Your Incident Response Plan Using resources such as the ACSC cyber incident response plan, NSW cyber incident response plan, or customised cyber incident response plan templates can streamline the development process. Additionally, a clearly designed cyber incident response plan flow chart visualises the response process, making implementation simpler for all team members. Complement Your Plan with Cyber Insurance While prevention and response are critical, not all incidents can be avoided. This is where cyber insurance plays a pivotal role: Cyber insurance coverage helps cover financial losses due to breaches. Cyber liability insurance supports your business against third-party claims related to data breaches. Understanding precisely what cyber insurance does not cover is equally crucial, so you can layer policies like the cyber insurance excess layer for added protection. At Global Insurance Solutions, we arrange tailored general insurance and specialised cyber security insurance designed specifically for Australian businesses. The Benefits of Integrating Cyber Insurance with Your Response Plan Having a robust incident response plan for cyber security coupled with comprehensive insurance offers multiple benefits: Financial protection against cyber threats. Access to expert incident response and recovery support. Confidence in maintaining business continuity and reducing downtime. Final Thoughts: Take Action Today Digital threats continually evolve, making proactive management critical. A robust cyber incident response plan combined with comprehensive cyber insurance ensures your business is prepared, protected, and capable of rapid recovery. At Global Insurance Solutions, we understand the complexities involved in safeguarding your digital assets. Contact our experts today to secure tailored advice and ensure your Australian business is prepared to tackle cyber threats head-on. Also Read : Understanding Business Liability | Ultimate Insurance Checklist for Australian Trade Shows | Australian Business Risk Strategies Frequently Asked Questions: Cyber Incident Response Plans for Australian Businesses 1. What exactly is a Cyber Incident Response Plan (CIRP), and why does my Aussie business need one? Answer: Fair dinkum, a CIRP is essentially your business’s detailed step-by-step guide on how to handle a cyber security incident. Think of it like your emergency action plan for a fire, but instead of flames, you’re dealing with hackers, data breaches, ransomware, and the like. You need one, mate, because these digital blokes aren’t mucking around. A well-thought-out plan helps you react quickly, minimise the damage, get back on your feet faster, and importantly, meet your legal and regulatory obligations here in Australia. 2. We’re just a small Aussie business; are Cyber Incident Response Plans really for us? Surely that’s for the big end of town? Answer: Cobber, don’t kid yourself. Size doesn’t matter to cyber crooks. In fact, smaller businesses are often seen as easier targets because they might not have the same level of security. A data breach or ransomware attack can absolutely cripple a small Aussie business – the cost of recovery, the reputational damage, and the potential legal headaches can be devastating. A CIRP is just as crucial for you, if not more so, to ensure your survival. 3. What sort of things should be included in our Australian business’s Cyber Incident Response Plan? Answer: Good on ya for asking the specifics. A decent CIRP for an Aussie business should cover: Clear Roles and Responsibilities: Who does what when the you-know-what hits the fan? Designate your incident response team and their specific duties. Communication Protocols: How will you communicate internally and externally during an incident? This includes staff, customers, suppliers, and potentially regulatory bodies like the OAIC (Office of the Australian Information Commissioner).Incident Identification and Analysis: How will you know an incident has occurred, and how will you quickly figure out what’s going on? Containment and Eradication: What steps will you take to stop the attack from spreading and to remove the threat? Recovery Procedures: How will you restore your systems and data and get back to business as usual? Post-Incident Activities: What will you do after the incident to learn from it and prevent it from happening again? This includes a thorough review and updating of your plan. Legal and Regulatory Compliance: Making sure you’re aware of and adhering to Australian data breach notification laws and other relevant regulations. Contact Information:

Non-fungible tokens are units of data stored on a blockchain, which is an immutable digital ledger for storing information. Proponents of NFTs argue they intrinsically provide proof of ownership. Examples of NFTs include digital artworks, domain names and in-game items. As a new invention, NFTs are a highly contested area and there are question marks over the veracity of these instruments. People who buy and sell these assets treat them as a unique store of value. However, there is nothing to stop someone creating an identical copy of an existing NFT. There is also very little understanding about how copyright might work in this area. Insurance options for NFTs At the moment, there are very limited ways of insuring NFTs. At time of writing, there was no evidence of anyone making a successful claim against a policy written over an NFT. It’s worth noting some commentators suggest the instruments don’t require cover. This is because NFTs have intrinsic insurance because they cannot be duplicated or stolen unless the NFT’s owner gives a third party their private keys to access them. There’s only a handful of specialist insurers that cover NFTs, with no appetite for this risk among larger insurers so far. In particular, the increasing incidence of scams involving NFTs are also unpalatable to mainstream insurers. “Insurers in general are less inclined to provide cover over digital assets, or are only prepared to provide restricted cover,” says Michael White, Steadfast’s broker Technical Manager. “Over time, Stroud expects insurers will be prepared to provide cover over NFTs, especially if asset owners put in place strategies to mitigate their risks.” The future for NFTs and insurance NFT educator, adviser and collector Amy Marie Stroud notes this is an area that is still like the wild west, with no legislation or protections. “There needs to be further education, both for end users and insurers, as there is limited understanding of the NFT sector unless you’re deep in it every day.” Over time, Stroud expects insurers will be prepared to provide cover over NFTs, especially if asset owners put in place strategies to mitigate their risks. This might include the use of secure cold wallets, which store digital assets offline, as well as air-gapped wallets, which isolate devices where NFTs could be stored from an unsecure network. Digital wallets that require multiple signatures to access their contents are another option. “Insurers will have to decide how they cover the human element of hackings and phishing scams, which account for most wallet compromises. Insurers may choose to only cover selected projects to reduce their risk,” says Stroud. “Large scale, custodial marketplaces such as Coinbase NFT are also likely to play a role. Most cryptocurrency investors leave their funds with custodial exchanges such as these, which are usually protected by insurance,” she adds. While it’s still early days for insurance for NFTs, it’s an area that will grow over time. Talk to your Steadfast broker for advice about protecting your digital and other assets.