Cybersecurity insurance helps businesses recover from cyberattacks, covering costs like data recovery, legal fees, and business downtime. Learn how it works and why it's vital.
In a world where cyber threats are increasing in frequency and sophistication, cybersecurity insurance has become a critical safeguard for modern businesses. While firewalls and antivirus software help protect your systems, what happens when a breach still gets through?
That’s where cybersecurity insurance steps in — covering the financial, legal, and reputational damage that follows a cyber incident.
If you're a business owner in Australia, especially in sectors like healthcare, finance, legal, or retail, understanding what cybersecurity insurance is — and how it works — is essential.
Cybersecurity insurance, also known as cyber liability insurance, is a type of business insurance that helps cover the costs associated with cyberattacks, data breaches, and digital threats. It acts as a financial safety net when your business is impacted by events like:
While traditional business insurance policies rarely cover cyber risks, cybersecurity insurance is purpose-built to address the digital dangers of today’s business landscape.
Coverage varies between insurers and policies, but most cybersecurity insurance products include the following:
Some insurers also provide incident response teams that can help coordinate your recovery, often working closely with your IT provider or MSP.
The ACSC (Australian Cyber Security Centre) receives over 70,000 cybercrime reports per year — that’s roughly one every 7 minutes. Even with the best defences, no system is 100% bulletproof.
Recovering from a cyberattack can cost tens — or even hundreds — of thousands of dollars. For small to medium businesses, this kind of hit can be devastating. Cyber insurance helps cover unexpected costs and keeps your business afloat.
How you respond to a cyber incident matters. Insurance often includes PR support to help manage communication and maintain client trust.
If you store customer data, you may be subject to the Notifiable Data Breaches scheme under the Privacy Act 1988. Cyber insurance helps ensure you meet your reporting obligations correctly and on time.
If your business:
… then cybersecurity insurance is not a luxury — it’s a necessity.
Even sole traders and small businesses are increasingly being targeted, often because their security isn’t as strong as larger companies.
Like all policies, cyber insurance has exclusions. It typically won’t cover:
Also, many insurers require you to maintain a minimum standard of cybersecurity hygiene — things like multi-factor authentication, endpoint protection, and data backups.
At BIT365, we help businesses meet these baseline requirements so their claims don’t get denied.
As a trusted Managed Service Provider (MSP), we don’t sell insurance — but we make sure you’re technically ready to qualify for it and support your insurer in the event of a claim.
Our services include:
We also help you implement best practices that insurance underwriters are increasingly demanding.
Cybersecurity insurance isn’t about replacing your IT defences — it’s about adding a financial buffer for when things go wrong. With the rise in ransomware, phishing, and data breaches, having a cyber insurance policy in place gives you peace of mind and protection beyond the firewall.
BIT365 works closely with clients to ensure they have the cyber protections insurers require — and the IT support they need if an incident ever occurs. Get in touch today to assess your readiness.
