Have you got Cyber Insurance?

Posted on: Tuesday, 11 April 2017.

Regardless of the industry or sector you’re in, if you’re a business running in today’s modern world, there’s no doubt you are reliant on technology in some shape or form. In fact, in more cases than not, technology and data forms the bedrock of your business operations, and production would stall immediately if your technology and data were taken away.
   

What exactly do we mean by “data”?

Business data can include everything in the following:

  • Employee profiles
  • Customer CRM records
  • Private Corporate Documentation
  • Financial account records (e.g. MYOB, Xero)
  • Credit card information
  • Documents

Essentially, it’s all the information, figures and documents your business stores in some capacity online. And, if you have or rely on data in your business, you are vulnerable to cybercrime. This short video by Australia and New Zealand Institute of Insurance and Finance (ANZIIF) succinctly touches on the cyber risks small businesses need to be aware of.    

If you’re not quite sure what cyber crime entails, in a nutshell, it’s any illegal activity carried out via the internet or a computer.
         

Cybercrime includes any of the following:

  • Extortion (Often a threat to data loss or leakage with demand for large sums of money)  
  • Fraud and Identity theft (Medicare, Driver’s License)
  • Cyber stalking
  • Use of malware and viruses
  • Computer and network hacking
  • Online scamming and phishing
  • Information theft (documents, data, IP)

On top of the short term impacts a cybercrime has on your business, like production and efficiency losses from business interruption, you also typically face long-term impacts such as a dive in client trust and satisfaction (in the instance of personal information being leaked or interruptions to service), as well as leaving a negative mark on your reputation amongst prospects. It goes without saying, these potential impacts can be very damaging and costly. Some businesses never recover from an attack.

If you think you’re immune to a cyber attack because cyber criminals are targeting the big guys over your small business, then you are sadly mistaken... Almost 70% of Australian businesses have been attacked by cybercrime in the last year. In fact, ANZIIF reported that Australia is the fifth most cyber-attacked nation, costing us $17 billion each year.  

The scariest part? So few businesses are actually insured against cybercrime, with small businesses lagging the most in getting the right protection in place.

As a start, every modern business needs to be set up with systems, infrastructure and software that will minimise the risk of a cyber attack.
         

This includes things like:

  • Secure data backups (Physical and Cloud)
  • Reputable anti-virus programs
  • Firewall technology
  • Data encryption
  • Secure passwords
  • Laptop and mobile security

Even if you do everything right as a business owner, you can’t always control how staff behave online, and they will often increase your risk, so cyber safe training is also important.  

As your Insurance Broker, we believe it is important to inform you of the cyber risks your business is vulnerable to and ensure that your insurance program is up-to-date for your business requirements. If you’re not sure exactly what you’re covered for in the technology spectrum, we recommend you speak with your broker at Country Wide Insurance Brokers to review your existing cover.
        

What is Cyber Insurance?

A cyber insurance policy can protect you against technology-related business interruption such as virus attacks, data loss and theft, website downtime and hacks, identity fraud, system suspension, cyber extortion and more. We can walk you through the finer details of different policies to find a solution to suit your business.

If you'd like to learn more about Cyber insurance and how it can protect your business please contact us, call us on (08) 6279 2300 or email us at info@cwib.com.au 

Sources

https://knowrisk.com.au/tips/5-ways-to-protect-yourself-online

https://knowrisk.com.au/insight/articles/cyber-insurance-and-your-small-business

https://knowrisk.com.au/insight/articles/electronic-equipment-insurance-for-small-businesses-the-basics




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