A competitor claims your app uses their patented feature and you copied their design. They sue for infringement and demand damages and an order to stop selling your software. You lodge a claim for the legal costs and payout.

IP infringement claims like patent or trade secret disputes are excluded. An exception may apply to some software copyright claims.

A storm knocks out the NBN in your area. Your phones and internet drop and your cloud POS cannot connect. You lose a day of sales and ask for business interruption cover, but there was no cyber attack on your provider.

Outages from third party utilities or telecoms are excluded, unless the provider’s downtime is directly caused by its own security failure.

Before you buy cyber insurance, you already know your customer portal has been hacked and data may be leaking, but you do not tell the insurer. Two weeks into the policy, customers complain and you lodge a claim for breach response costs and liability.

Incidents known or reasonably foreseeable by a senior executive before cover starts are excluded. Matters already notified elsewhere are too.

A director secretly redirects customer payments to a personal account and hides it in the books. When it is discovered, customers demand refunds and you ask the policy to pay the loss, plus legal costs to defend the business.

Dishonest or fraudulent acts by, or known by, a senior executive are excluded. Defence costs may be paid until a final decision is confirmed.