Cyber Security Insurance: Why Your Business Needs It and How Orbit Can Help You Minimise Premiums
In today’s digital-first world, cyber threats are not just a possibility—they’re a certainty. From phishing scams and ransomware attacks to data breaches and identity theft, the threats facing Australian businesses are growing in both complexity and frequency. That’s where cyber security insurance comes in.
Cyber insurance is designed to protect businesses from the financial fallout of a cyber attack. But qualifying for coverage—and keeping your premiums low—requires more than just filling out an application. It requires a proactive, security-first mindset backed by real-world practices and controls. That’s where Orbit Cyber & Governance can help.
In this guide, we’ll explore what cyber security insurance is, why it’s essential for businesses of all sizes, and how OrbitCG can help you improve your security posture and pay less in premiums.
What is Cyber Security Insurance?
Cyber security insurance (also known as cyber liability insurance) is a policy that helps businesses recover from cyber incidents. These incidents might include:
- Data breaches
- Malware and ransomware attacks
- Business email compromise
- Identity theft
- Denial of service (DoS) attacks
- Regulatory fines and penalties due to non-compliance
- Costs associated with incident response (IT forensics, legal fees, PR management)
- Ransom payments (where legal)
- Data recovery and system restoration
- Business interruption losses
- Third-party liabilities (e.g. client lawsuits)
- Regulatory defence and penalties
Why Your Business Needs Cyber Insurance
1. Cyber Attacks Are on the Rise
Australia has seen a sharp increase in cybercrime in recent years. The Australian Cyber Security Centre (ACSC) reports that a cyber attack occurs every 6 minutes, with small to medium-sized businesses increasingly being targeted.
Many businesses assume they’re “too small” to be attacked. But in reality, smaller organisations often lack the robust defences that make larger enterprises harder to breach, making them a prime target.
2. The Financial Impact is Devastating
The cost of a data breach can cripple a business. Beyond the immediate costs of incident response and recovery, businesses face reputational damage, loss of customer trust, regulatory fines, and potential lawsuits.
Cyber insurance can help offset these costs, providing a vital lifeline to businesses that might otherwise struggle to recover.
3. Compliance and Regulation
Privacy and data protection laws such as the Australian Privacy Act (and internationally, GDPR or HIPAA) are increasing in scope. Cyber insurance can help businesses manage the fallout from compliance breaches—but only if they demonstrate that they’ve taken reasonable steps to protect data.
Having coverage can also help fulfil contractual obligations to partners, suppliers, or clients who may require you to carry cyber liability insurance.
4. It’s a Key Part of Risk Management
Cyber insurance is now considered a best practice component of enterprise risk management. Insurers, investors, and even customers view it as a sign that your business takes cyber risk seriously.
Cyber Insurance is Changing: What Insurers Want to See
In the past, cyber insurance could be purchased with minimal scrutiny. Today, underwriters have grown far more selective. Before offering a policy—or setting a premium—they’ll assess your business’s cyber readiness across a range of categories.
Insurers often look at:
- Multi-Factor Authentication (MFA) for all remote access and critical applications
- Endpoint protection and anti-malware systems
- Regular backups stored offline or in immutable environments
- Incident response planning and testing
- Employee security awareness training
- Patch and vulnerability management
- Third-party risk management
How Orbit Cyber & Governance Helps You Prepare for Cyber Insurance
OrbitCG doesn’t just help businesses get cyber insurance—we help you get the best possible outcome by improving your security maturity and reducing your risk profile. Here’s how:
1. Cyber Security Maturity Assessments
We assess your current cyber posture against industry standards such as the Essential Eight, NIST CSF, or ISO 27001. Our detailed gap analysis gives you a clear picture of your strengths and vulnerabilities—exactly what insurance underwriters want to see.
2. Roadmaps to Mitigate Risk
Based on your assessment, OrbitCG creates a prioritised action plan to close gaps, implement controls, and demonstrate your commitment to cyber resilience. This not only strengthens your business, but directly lowers your perceived risk to insurers.
3. Policy Support and Readiness Checklists
We help you understand the typical requirements insurers have when assessing a cyber application. From having a tested incident response plan to showing proof of employee training, we make sure you’re not caught off-guard when filling out applications or responding to audits.
4. Ongoing Governance and Compliance
Cyber readiness isn’t a one-time activity. Orbit can support your ongoing governance, compliance reporting, and incident response capabilities—helping you maintain eligibility for insurance and demonstrate proactive risk management year after year.
5. Vendor and Supply Chain Risk Management
Third-party vendors are a common attack vector. Orbit helps you assess and monitor vendor risk—something many insurers ask about in underwriting questionnaires.
6. Liaison with Insurance Brokers
If needed, Orbit can work alongside your insurance broker to clarify your risk profile, provide documentation, and ensure your security efforts are fully reflected in your premium pricing.
Benefits of Working with Orbit for Cyber Insurance Readiness
Lower Premiums: By implementing security best practices, you may qualify for discounts or better coverage terms.
Faster Underwriting: Insurers are more likely to approve your application quickly when your documentation is clear and comprehensive.
Greater Coverage Options: A strong cyber security posture opens the door to broader policy offerings and higher claim limits.
Peace of Mind: Knowing that both your systems and your finances are protected allows you to focus on your core business.
Business Resilience: Orbit’s guidance improves your ability to detect, respond to, and recover from attacks—whether or not you end up using your insurance.
Who Should Consider Cyber Insurance?
Cyber insurance is essential for:
- Businesses that store personal or financial data (e.g. healthcare, retail, education, finance)
- Companies with remote or hybrid workforces
- Organizations that use cloud services or third-party platforms
- Any business that would struggle to survive a major IT disruption or data loss