Cybercrime is increasing exponentially (* see Four Corners link below), making cyber security and #CyberInsurance a necessity or priority in business. Charles Galayini, of GSA Insurance Brokers distinguished what insurance covers and does not cover at Monday’s Nexus Law Group Lunch & Learn event.
Charles noted that cyber insurance covers cyber security involving external hackers who access systems, eg as a result of a hyperlink clicked in a Nigerian scam email resulting in access provided to an organisation’s email system. (Don’t click email links or attachments from entities unknown to you!)
Charles noted insurers distinguish three types of insurable events:
- cyber security insurance;
- employee theft (ie when an employee causes or facilitates loss);
- phishing, aka social engineering fraud, involving for example money sent due to mistaken identity.
Given these distinctions, clients should check insurance contract coverage very carefully and ensure risks are expressly identified for required insurance.
* On African-originated cyber crime watch ABC Australia Four Corners “Meet the Scammers” screen yesterday. https://www.abc.net.au/4corners/meet-the-scammers/10801250