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Directors in the Firing Line: Responding to Cyber Threats


It is hard to identify any company that is immune to cyber crime in today’s interconnected digital world. First lines of technological defence are no longer impenetrable and directors are now being held directly accountable when the businesses they govern experience a cyber security event.

Data breaches affect millions of records a year: data or network sabotage, virus and Trojan infection, computer fraud and laptop theft, incidents of denial of service and network scanning are ever increasing and it is unlikely the underlying trends will improve. According to the 2014 report from a research center dedicated to privacy, data protection and information security policy, the Ponemon Institute, 2014 Cost of Data Breach Study: Global Analysis, the mean annualised cost of cyber crimes for 257 benchmarked organisations was US$7.6 million per year, with the cost ranging from US$500,000 to US$61 million per company each year. As such, insurance coverage for cyber risks should be a significant and growing concern for companies.

Read more about directors and officers' risks in this field in our latest report.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.