How does Cyber Insurance work?
Cyber Insurance in action
A welfare organisation has its computer system hacked and its clients' personal information accessed. Credit card and tax file numbers, as well as Centrelink data is stolen and sold on for the purposes of identity theft.
Over time, as its clients fall victim to identity fraud, claims are made against the welfare organisation alleging inadequate computer system security.
Because Cyber Insurance was in place when the computer system was hacked, CCI covers all compensation payouts to the value of $1m.