Commercial Insurance

Protection for the wealth you store in your data

You've insured your premises, your belongings and your income. But what about the data in your databases, and the systems you rely on to keep running?

What is cyber insurance?

Cyber insurance policies cover losses from online criminal activity. The Australian Federal Police identifies cybercrimes including computer invasions; the fraudulent acquisition or trading of personal financial information; the creation and distribution of malicious software such as malware, viruses and ransomware; and unauthorised damage to electronic communications or data.

Do I need cyber insurance?

Cyber-attacks on Australian businesses are increasing. In 2024–25 the Australian Signals Directorate received over 84,700 cybercrime reports — one every six minutes. The average self-reported cost of a cybercrime report was $56,600 for a small business and $97,200 for a medium business, according to the ASD Annual Cyber Threat Report 2024–25. Under-reporting means the real figures are likely higher.

Crisis management
Customer notification
Extortion costs
IT systems
Lawsuits
Regulatory fines and penalties

Then there's the price you can't put in a spreadsheet: your reputation, employee morale and customer loyalty after an attack.

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What will a cyber policy cover?

A cyber policy covers first-party losses — those that hit you and your company directly — and third-party losses, which come as claims from people affected by your security breach.

Common exclusions

Some policies contribute to extortion payments in limited circumstances, and most help with crisis management — check with us what your policy covers before you need it.

Expected losses — losses you anticipate before the attack
Loss of intellectual property — difficult to underwrite, so most policies focus on you, your company and your clients
Improving your systems — upgrades and extra training after an attack are usually not covered

Risks to look for in your policy

Information stolen by hackers (employee, personal and confidential client or product data)
Legal action from people affected by the breach
Business interruption and lost income while you recover
Virus or system damage to hardware and software
Defamation and copyright or trade mark infringement claims
Ransom demands and the cost of crisis management

From our clients

“Our dealings with KeyInsure have always been very friendly and helpful, also very quick response and professional advice. Pretty sure they save us money on our insurances also. Thank you.”

Keylend

What affects your premium

Cyber premiums reflect how much data you hold and how well you protect it.

Turnover and size

Annual revenue, number of staff and number of sites all feed into the premium.

Data you hold

Personal, financial and health records raise the exposure and the premium.

Security controls

Multi-factor authentication, backups, patching and staff training are now asked about on most applications.

Reliance on systems

Businesses that cannot trade without their systems have higher business interruption exposure.

Limit of cover

A higher limit costs more. Contracts and site requirements often set the minimum you need.

Claims history

Past claims — yours and, in some cases, the industry’s — affect what insurers offer.

Common questions

Does cyber insurance cover ransomware?

Most policies respond to ransomware events, including incident response, data recovery and business interruption. Whether an extortion payment itself is covered varies between policies and is subject to conditions.

I am a small business — am I really a target?

Small businesses are often targeted because they tend to have weaker defences. Automated attacks do not discriminate by size.

Do I need cyber cover if I use cloud services?

Cloud providers secure their infrastructure, but your accounts, your staff and your customers’ data remain your responsibility. Many breaches start with a phished password rather than a data centre.

What is the difference between first-party and third-party cover?

First-party covers your own costs — response, recovery, lost income. Third-party covers claims from others affected by a breach, such as customers whose data was exposed. Most policies include both.

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