Cyber Risk is Inevitable
Every business now operates in a digital world — from internal communications, financial transactions, to storing customer data.
However, the greater the reliance on technology, the greater the risk of cyber attacks that can halt operations in an instant.
The latest data from the National Cyber and Crypto Agency (BSSN) shows that by 2024, there will be more than 400 million cyberattacks on systems in Indonesia, including ransomware, data breaches, and social engineering.
The losses incurred could reach billions of rupiah, not including the impact on reputation and customer trust.
This is where Cyber Insurance comes in — not just to compensate for losses, but also to protect the continuity of digital businesses.
As an experienced national broker, PT. Liberty and General Insurance Broker (L&G Insurance Broker) helps companies assess their needs, select the right products, and ensure claims are processed effectively when risks actually occur.
Why Choosing Cyber Insurance Can’t Be Random
Many companies purchase insurance simply because they are “following the trend,” without understanding the contents of the policy or the risk coverage.
However, cyber insurance policies are highly technical and complex — each company has different needs and risk profiles.
Choosing the wrong policy can result in a claim being rejected, for example because:
- System configuration errors are considered negligence.
- Data stolen by an unsecured third party vendor.
- The attack occurred outside the police-protected area.
Therefore, choosing Cyber Insurance should not be done without professional assistance from a broker who understands the details of the risks, policy language, and your industry needs.
Steps to Choosing the Right Cyber Insurance
🔹Step 1: Understand Your Business Risks and Needs
Before purchasing insurance, companies need to conduct a risk assessment to answer important questions:
- What is the most critical data or digital asset for a business?
- Does your business store customer or financial data?
- Do you use third party systems (vendors, cloud)?
- How big is the potential loss if the system is down for 1–3 days?
Brokers like L&G Insurance Broker can help create a digital risk profile (cyber risk profile) so that the protection purchased is truly relevant.
🔹Step 2: Identify the Types of Protection in Cyber Insurance
Cyber Insurance policies typically cover two main groups:
| Type of Guarantee | Description | Sample case |
| First Party Coverage | Protects the company from direct losses due to attacks | Data recovery, loss of income, ransomware payments |
| Third Party Coverage | Protecting claims from other parties due to data leaks | Customer lawsuit due to personal data leak |
Additional benefit details to note:
- Digital Asset Restoration (data/software recovery)
- Cyber Extortion (ransomware)
- Business Interruption (lost revenue due to downtime)
- Regulatory Fines (fines due to violations of the PDP Law)
- Crisis Communication (reputation recovery)
Not all policies offer full coverage.
The broker’s job is to ensure that all relevant risks are included in the guarantee.
🔹Step 3: Pay attention to the limitations (exclusions) in the policy.
Most claim denials occur because buyers do not read the policy exclusions.
Examples of common exceptions:
- The attack was carried out by an internal employee.
- Disruption due to general power failure.
- Disorder in storing passwords.
- Cyber attacks carried out by states (state-sponsored attacks).
L&G Insurance Broker will assist clientsnegotiatepolicy wording so that limits are not detrimental, especially for high-risk sectors such as banking, fintech, or digital manufacturing.
🔹Step 4: Determine the Appropriate Limit and Deductible
Each policy has:
- Limit of Liability: the maximum limit of claims that can be paid.
- Deductible/Retention: the portion of the loss that is borne by the insured.
Brokers help calculate the ideal limit based on:
- Mark asset digital,
- Frequency of digital transactions,
- Potential recovery costs, and
- Risk of loss of income due to downtime.
As a guide, mid-sized companies in Indonesia typically take limits between USD 500,000 – 5 million, depending on system complexity and exposure.
🔹Step 5: Evaluate the Insurer’s Reputation and Capacity
Not all insurance companies have the capacity and expertise to handle cyber claims.
L&G Insurance Broker collaborates with various local and international insurers who have good track records, such as:
Chubb, AIG, Tokio Marine, Zurich, QBE, Lloyd’s Syndicates, dll.
Brokers ensure companies get:
- Insurers who have real experience handling cyber claims.
- Strong financial capacity to pay large claims.
- Forensic support and IT response team in its policy.
🔹Step 6: Ensure Claims and Incident Response Support is Available
A good cyber policy should include:
- 24-hour emergency hotline,
- Digital forensics team,
- Crisis legal and PR team,
- Quick step guide to incident handling.
L&G Insurance Broker assists clients in:
- Develop an Incident Response Plan (IRP),
- Report claims quickly and completely,
- Negotiating a settlement with the insurer.
🔹Step 7: Review Regularly
The digital environment is changing rapidly — today’s threats could be completely different next year.
Therefore, cyber policies should be reviewed every 12 months with a broker to ensure:
- Limits are still relevant,
- New risks are covered,
- Policy wording remains in accordance with the latest regulations such as the PDP Law.
Common Mistakes in Buying Cyber Insurance
Some mistakes that companies often make in Indonesia:
- Buying without risk analysis.
→ As a result, coverage does not meet needs.
- Assume all police are the same.
→ Even though each insurer has different wording.
- Does not involve brokers.
→ Causes difficult claims when an incident occurs.
- Ignoring third party (vendor) risks.
→ Many attacks come in through cloud suppliers or IT services.
- Not updating the policy according to business developments.
L&G Insurance Broker helps avoid such mistakes with a thorough due diligence process before policy closing.
Case Study: Fintech Companies and Phishing Attacks
A fintech company in Jakarta experienced a phishing attack that resulted in the leak of 3,000 customer data.
As a result:
- Reputation plummeted,
- Regulator fines Rp 1.2 billion,
- Forensic and PR costs Rp. 800 million.
However, because the company has Cyber Insurance facilitated by L&G Insurance Broker, all investigation, legal, and crisis communication costs are covered by the insurer.
Operations were restored within 10 days — and reputation was restored.
Fungsi Vital PT. Liberty and General Insurance Broker (L&G)
As an OJK-licensed broker with extensive experience across various industry sectors, L&G plays a strategic role in:
🔸 1. Risk Assessment & Profiling
Identify the type and level of the company’s digital risks.
🔸 2. Policy Design & Negotiation
Designing policy wording and negotiating the best premiums from various insurers.
🔸 3. Placement & Administration
Handle the policy closing process efficiently and transparently.
🔸 4. Claims Advocacy
Accompanying clients throughout the claims process until payment is completed.
🔸 5. Training & Awareness
Provide training for employees on cyber risk management.
With this approach, L&G becomes a strategic partner that not only sells policies, but helps companies build long-term digital resilience.
Conclusion: Investing for the Digital Future
Cyber Insurance is more than just financial protection — it’s a critical component of a digital risk management strategy.
Selecting the right policy requires in-depth analysis, legal understanding, and technical expertise, which can only be obtained through a professional broker like PT. Liberty and General Insurance Broker.
With the right Cyber Insurance, companies can:
- Facing cyber attacks calmly,
- Minimize financial and reputational losses,
- Ensuring business continuity in an increasingly risky digital world.
In the digital age, the question is no longer “if” a cyberattack will happen — but “when.”
Make sure you are prepared with the right protection.
🔐Protect your digital assets and business reputation today.
Consult your Cyber Insurance needs with:
- Liberty and General Insurance Broker (L&G Insurance Broker)
HOTLINE L&G 24 JAM: 0811-8507-773 (PHONE – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
