How much does cyber insurance cost in Australia?

Given the complex nature of this product, cyber insurance premiums are highly personalised per business and can depend on a business' IT set up, data hygiene and existing cybersecurity software.

Is cyber insurance mandatory in Australia?

No, cyber insurance is not mandatory. However, reporting a data breach is mandatory for all businesses under the Notifiable Data Breaches Scheme, run by the Office of the Australian Information Commissioner (OAIC).

Does cyber insurance cover employees working from home on personal devices?

Yes, most cyber insurance policies cover remote work and BYOD (Bring Your Own Device) setups, provided the business maintains a minimum standard of security for those devices. This usually includes requiring employees to use a VPN, maintain up-to-date antivirus software and use approved password management tools.

Is cyber insurance a legal requirement for Australian businesses?

No, cyber insurance is not legally mandatory for Australian businesses, although it is increasingly required by contract for those supplying services to government agencies or large corporate clients. It is also considered a practical necessity for entities subject to the Notifiable Data Breaches (NDB) scheme to manage the costs of mandatory reporting and remediation.

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What is cyber insurance?

Cyber insurance is a form of business insurance that can financially protect businesses in the event of a cyber attack. 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. It is important to note that many standard general liability insurance policies explicitly exclude cyber-related events, meaning that a standalone policy is often necessary to bridge the gap in protection for digital risks.

What does cyber insurance cover?

Cover will vary by provider but typically, you can be covered for:

Data breaches including theft of client information
Network breaches
Business interruption costs
Forensic investigation
Data recovery coast
Cyber extortion
Crisis management costs

Loss and legal costs, including fines and penalties

Modern policies are designed to address the specific methods used by criminals today, such as ransomware and phishing scams. Beyond just covering the loss of data, many insurers provide specialised response services that assist with ransom negotiations and cyber extortion response. Coverage can also extend to fraudulent fund transfers (where criminals trick staff into sending money to the wrong accounts) and the significant regulatory compliance costs associated with notifying affected individuals and government bodies after a breach.

First-party coverage

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

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).

Do I need cyber insurance for my small business?

Cyber insurance is not mandatory, however, it's wise to consider. In January - June 2024, The Office of the Australian Information Commissioner (OAIC) received 527 notifications of data breaches. 67% of those occurred as the result of a malicious or criminal cyber attack. Data from the 2024-2025 reporting period shows that human error continues to be a major factor, accounting for a significant portion of all breaches. This highlights that insurance is necessary to cover failures beyond technical IT security, such as a staff member accidentally clicking a malicious link or disclosing sensitive login credentials.

Cyber attacks pose a significant threat to businesses, both financially and reputationally. Cyber insurance can help business owners deal with breaches quickly and keep the business interruption to a minimum.

Why small businesses need cyber insurance

There is a common misconception that cyber criminals only target major corporations, yet Australian small to medium enterprises (SMEs) are increasingly viewed as prime targets. Attackers often focus on smaller operations because they typically have weaker security infrastructure and fewer dedicated IT resources than larger firms. According to the Australian Signals Directorate (ASD) Annual Cyber Threat Report 2024-2025, the average self-reported cost of cybercrime for a small business has risen to over $56,600 per incident. For many SMEs, a single breach can be catastrophic, leading to significant operational downtime or even permanent closure.

How are premiums for cyber insurance calculated?

The cyber landscape is frequently evolving which makes mitigating risk, and creating insurance premiums that cover that risk, increasingly difficult. Insurers typically need access to their client's data and IT processes to test their cyber defences and analyse the risk. From there, a price can be formed.

This makes premiums highly personalised and hard to foresee. However, you can get quotes from multiple insurers to know if the quotes seem consistent. From there, you can find a policy that best fits your business needs and budget.

How to buy cyber insurance

Cyber insurance can be purchased directly from an insurer or via a broker. Given the complex nature of the product and coverage needs, many businesses like to enlist the help of a broker. However, for micro-businesses and SMEs with simpler requirements, many providers now offer quick and streamlined online quoting platforms that allow you to get protected in a matter of minutes.

Talk to a broker about cyber insurance

Cyber insurance is a form of business insurance that financially protects businesses from cyber attacks and minimises out-of-pocket expenses.
Coverage typically includes data breaches network breaches business interruption costs forensic investigation data recovery costs cyber extortion crisis management costs and legal costs for first-party and third-party claims.
While not mandatory cyber insurance is a wise consideration for businesses due to the significant financial and reputational threats posed by cyber attacks, with 67% of data breaches in early 2024 resulting from malicious cyber activity.
Premiums are highly personalised based on a business' IT setup data hygiene and existing cybersecurity software making them complex to foresee, but quotes can be obtained from multiple insurers or via a broker.

FAQs

No, cyber insurance is not legally mandatory for Australian businesses, although it is increasingly required by contract for those supplying services to government agencies or large corporate clients. It is also considered a practical necessity for entities subject to the Notifiable Data Breaches (NDB) scheme to manage the costs of mandatory reporting and remediation.

Sources

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To make sure you get accurate and helpful information, this guide has been edited by Joelle Grubb as part of our fact-checking process.

Written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio

Co-written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 572 Finder guides across topics including:

Health, home, life, car, pet and travel insurance
Managing the cost of living

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Cyber Insurance Australia