Product Launch – Cyber eRisks Policy
As technology advances so do the risks your clients face. LAUW is pleased to announce the launch of its Cyber eRisks policy.
Did you know?
The average cost of a data breach in Australia in 2013 was $US1.96 million, according to a 2013 study by the independent Ponemon Institute for Symantec*.
Of nine countries included in the survey, only the USA, at $US3.03 million, exceeded Australia. Ponemon said lost business costs included abnormal turnover of customers, increased customer acquisition activities, reputation losses and diminished goodwill.
Separate research conducted for McAfee** found 45% of Australian small-to-medium businesses (25 to 250 employees) surveyed in April 2013 had experienced a targeted electronic attack within the prior 12 months. Of those, 21% had been attacked three or more times.
Warning – new privacy laws coming soon
On March 12, 2014, a new privacy regime begins.
• new Australian Privacy Principles (APPs);
• amendments to the Privacy Act; and
• fines of up to $1.7 million for agencies and companies and $340,000 for individuals for serious or repeated invasions of privacy (ie breaches of the APPs and the Privacy Act).
The Privacy Commissioner and his team are likely to be particularly active in enforcement in the first 18 months to two years after March 12.
Whether it is clients or employees’ personal information, there are increasing expectations the information is secure. The list of regulations and statutes about using and protecting personal information, and the requirements for notiﬁcation if breaches occur, continue to expand.
Once a breach has been notiﬁed to clients and/or employees involved, regulators and lawyers are likely to come knocking.
What is cyber insurance?
LAUW’s Cyber eRisks policy is designed to cover privacy and other third-party liabilities, plus related first-party costs for other network security exposures. LAUW provides flexible coverage with seven insuring clauses to choose from, so our policy can be tailored to meet your clients’ needs.
News Alert January 2014