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Cyber liability insurance

Cyber liability insurance can protect your business from cybercrime and extortion.

What you need to know

  • If you rely on digital technology to make sales, communicate or store information, then you are exposed cybercrimes.
  • Cyber insurance can protect your business from cyber-attacks like computer hacking, data theft and data destruction.
  • Cyber risk costs the global economy more than $450 billion a year.

Receive a cyber liability insurance quote

Name Product Cyber Incident Response Data Extortion Data Restoration Costs Cyber Crime Business Interruption Levels of cover
upcover Business Insurance

What is cyber liability insurance and how does it work?

Cyber insurance is a form of business insurance that can financially protect businesses in the event of a cyber attack. Cover usually includes:

  • First-party coverage for loss or damage that directly affects you or your business (e.g. loss of income from system downtime).
  • Third-party coverage for claims made against your business by someone that has been negatively affected by a cyber issue (e.g. legal and compensation costs following a data breach).
  • Incident response costs or management to help you quickly recover from an attack.

Cyber liability insurance in Australia provides you with both a safety net to minimise your out-of-pocket expenses when dealing with a cyber attack and access to a team of experts so you can focus on running your business.

What does cyber liability insurance cover?


  • Business interruption. Losses suffered by your business following an attack.
  • Electronic theft. Transfer of funds or property due to fraudulent input of data into a computer system or on the faith of fraudulent communication.
  • Electronic threat loss. This includes the cost of a negotiator or ransom payment.
  • Crisis expenses. Covers expenses incurred from incident management and public relations consultants following a loss.
  • Reward expenses. May include cost of paying an informant.
  • Disclosure liability. Claims from third parties following system security failure that result in unauthorised access to sensitive information.
  • Defence costs. Provides cover for costs that may be incurred defending claims.

Not Covered

  • Anti-competitive behaviour. Any false, deceptive or unfair trade practices advertising.
  • Security upgrades. Costs to improve your technology systems following a cyber attack.
  • Property damage. Any damage to physical property, including hardware.
  • Infrastructure failure. An outage or disruption of a power supply due to a physical event such as a fire, storm or earthquake.
  • Intellectual property. Loss of value due to theft of your intellectual property.
Make sure you read the PDS
2022 Finder research shows that 23% of Australians can't be bothered reading the product disclosure statement. It may be boring but it's worth it in the long run.

Is cyber Cyber insurance compulsory in Australia?

Cyber insurance in Australia is not compulsory.

But compulsory or not, falling victim to a cyber attack is a very real possibility. Australian Cyber Security Centre data shows that approximately one cybercrime report is made every eight minutes here in Australia alone.

The damage to your business’s income and reputation is not the only financial consequences that are at risk. If you are seen to be negligent in how you protect customers’ data and even in how you respond to a cyber attack, you may also be up for penalties reaching into the millions.

Optus’ September 2022 cyber attack – and Medibank's in October 2022 – are just 2 examples of how much of an impact cybercrimes have on Australians, and the industry is expected to tighten privacy and security laws in the future.

Sure, you might not be as big as Optus, but no matter the size of your business, here are some real risks to consider:

  • Data breaches, for example, your customers' information.
  • Fraud and theft, for example, getting your online store hacked.
  • Business interruptions such as your website getting taken down.

Traditional business insurance may fail to cover these risks or take longer to process.

How can I compare cyber insurance?

When comparing cyber liability insurance policies, make sure to take the following factors into consideration:

  • Identify the risks your business faces. The biggest risk for one business might be completely different to the biggest risk for the next. Make sure the problems your business could face are covered under your policy.
  • What sort of cover do you already have? Some of the insurance you already have in place may provide some coverage for cyber risks. Speak to an insurance expert to understand how your business is placed.
  • Get the right level of cover. Cyber liability is not a "one size fits all" type of cover. Determine if the amount you're insured for will be enough to cover the costs you'll incur in the event of a data breach and assess whether some of the tailored options will be necessary.
  • Know what's excluded. Knowing what is and isn't covered on any insurance policy is always essential. Check your insurer's list of exclusions to prevent any nasty surprises at some stage in the future.
  • What about third-party negligence? If, like many businesses, you outsource tasks like data processing or storage to a third party, check whether negligence from that third-party will be covered by your insurance provider.

Talk to a broker about cyber liability insurance

Frequently asked questions

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