Cyber Liability Insurance

Premiums for small businesses with revenue under $5 million typically range from $1,000 to $5,000 per year for limits of $250,000 to $1 million. Mid-sized businesses pay between $5,000 and $25,000 depending on industry, data holdings and security posture. Businesses with poor cyber hygiene or previous incidents pay significantly more. Request a free quote through Shielded for accurate pricing.

Yes. Most cyber liability policies cover ransomware events, including forensic investigation costs, negotiation specialist fees, ransom payments where legally permitted and commercially justified, and the costs of restoring systems and data from backups. Some policies impose sub-limits on extortion payments or require insurer approval before any payment is made.

Most cyber insurers now require minimum security controls as a condition of cover. Common requirements include multi-factor authentication on email and remote access, regular software patching and updates, encrypted and tested backups held offline, endpoint detection and response tools, and employee cyber awareness training. Failing to maintain these controls can void cover.

Many cyber policies include cover for financial losses arising from business email compromise and social engineering attacks, where an employee is deceived into transferring funds to a criminal. However, this cover is often subject to sub-limits and specific conditions, such as requiring verification procedures for payment changes. Check your policy wording carefully.

In most cases, no. Standard business insurance policies including professional indemnity, general liability and property insurance typically exclude or severely limit cover for cyber-related losses. Some policies include a small cyber extension, but these rarely provide adequate cover for a significant cyber event. A standalone cyber liability policy is recommended for comprehensive protection.

Most cyber policies provide a 24/7 incident response hotline. When you report a breach, the insurer activates a response team including forensic investigators, legal advisors and crisis communications specialists. They manage the investigation, advise on notification obligations, coordinate customer communications and handle any resulting claims or regulatory inquiries. The policy covers these costs.

Yes. Small businesses are increasingly targeted by cyber criminals because they often have weaker security controls than larger organisations. A ransomware attack or data breach can be financially devastating for a small business. The Australian Cyber Security Centre reports that small businesses are among the most frequently targeted. Even a basic cyber policy provides critical financial protection and access to incident response resources.

Professional indemnity (PI) insurance protects professionals and businesses against claims arising from negligent acts, errors, omissions or breaches of professional duty in the provision of services or advice. It covers legal defence costs, settlements and damages awarded against you. PI insurance operates on a claims-made basis, meaning the policy in force when the claim is made responds - not the policy in force when the work was performed.

Any professional who provides advice, designs, recommendations or services to clients should carry PI insurance. This includes accountants, architects, engineers, lawyers, financial planners, mortgage brokers, IT consultants, real estate agents, builders, health practitioners, management consultants and many more. For many professions, PI insurance is mandatory under Australian legislation or industry body requirements.

PI insurance premiums depend on your profession, annual revenue or fee income, claims history, limit of indemnity required and the scope of services you provide. A sole practitioner consultant might pay $500 to $2,000 per year for $1M cover, while a mid-size engineering or accounting firm could pay $5,000 to $20,000+ for $5M to $10M cover. High-risk professions like financial planning or building design attract higher premiums.

PI insurance typically covers legal defence costs (solicitors, barristers, court fees), damages or settlements awarded to the claimant, investigation costs from regulatory bodies, breach of professional duty, negligent acts or omissions, unintentional breach of confidentiality, loss or damage to client documents, and defamation arising from professional activities. Cover extends to past work through retroactive dates.

Yes, for many regulated professions in Australia. Mandatory PI insurance requirements apply to solicitors, financial advisers (AFSL holders), mortgage brokers, accountants (registered tax agents), architects, building practitioners in most states, real estate agents, migration agents, customs brokers, and various health practitioners. Requirements vary by state and professional body - check your specific obligations.

Professional indemnity covers financial loss caused by your professional advice or services - for example, an accounting error that costs a client money. Public liability covers physical injury or property damage caused by your business operations - for example, a client tripping over a cable in your office. Most professionals need both, but they cover fundamentally different risks.

PI insurance operates on a 'claims-made' basis, meaning the policy that responds is the one in force when the claim is first made or notified - not the policy that was in force when the work was performed. This is why continuous, unbroken cover is essential. If you change insurers or let your policy lapse, you may lose cover for past work. Run-off cover is available for professionals who retire or close their practice.

The limit of indemnity you need depends on your contractual obligations, regulatory requirements and risk exposure. Many contracts require $1M, $2M, $5M or $10M minimum cover. Regulatory requirements vary by profession - for example, AFSL holders have specific minimums set by ASIC. Consider your largest client contracts and the potential financial impact of a claim when selecting your limit.

Contact us at Shielded Insurance on 1800 97 98 99 or your insurer directly. With PI insurance, early notification is critical - you must notify your insurer of any claim or circumstance that could give rise to a claim as soon as you become aware of it. Late notification can jeopardise your cover. Never admit liability or attempt to settle a claim without insurer approval.

We access a broad range of Australian domestic markets, specialist underwriting agencies and international capacity including Lloyd's of London syndicates. This allows us to place cover for standard professions through to complex or hard-to-place risks. As brokers, we compare multiple options to find competitive and suitable cover for your profession and risk profile.