How Much Do You Really Understand About the Risk of Cyber Security on Your Business?
In today’s digital age, the risk of cyber threats to your business is ever-present and continually evolving. BUT, so many businesses choose to ignore the risk and stick their head in the sand and hope it never happens to them.
How much do you fully comprehend the potential financial and reputational damage that a cyber-attack could inflict on your type of business?
What is Cyber Protection Insurance?
Cyber protection insurance is designed to help safeguard your business against the financial impact of cyber threats, including hacking and data breaches.
This type of insurance is essential for mitigating the costs associated with such incidents.
Who Should Consider It?
Any business with an online presence or electronic records is susceptible to cyber-attacks. It’s not a matter of if, but when your business will encounter a cyber threat.
Its ok for the owner to think “I want get scammed” but that doesn’t work for every employee also working on a computer within the business.
These attacks can have far-reaching consequences, extending beyond financial loss to include threats to your intellectual property and the security of your customers’ personal information, ultimately damaging your reputation.
$97,200 is the average loss per cybercrime for medium businesses. This compared to $71,600 for large organisations and $46,000 for small businesses. (Australian Cyber Security Centre, Annual Cyber Threat Report, 2022-23)
What Can It Cover?
Cyber insurance policies vary widely in their coverage. Working with your insurance broker, you can find a policy tailored to meet your specific business needs. Coverage may include:
First Party Losses
- Business Interruption Losses: Financial losses resulting from a cyber-attack.
- Cyber Extortion: Costs associated with dealing with extortion demands, hiring negotiation experts, and preventing future threats.
- Electronic Data Replacement: Expenses related to recovering or replacing business data.
Third Party Losses
- Security and Privacy Liability: Damages from data breaches affecting third-party data.
- Defence Costs: Legal defence expenses for claims.
- Regulatory Breach Liability: Legal expenses and fines from government investigations.
- Electronic Media Liability: Costs related to copyright infringement, defamation claims, and misuse of intellectual property online.
Extra Expenses
- Crisis Management Expenses: Costs for managing a crisis caused by cyber-attacks.
- Notification and Monitoring Expenses: Costs for notifying customers of a security breach and monitoring their credit card information.
Understanding Cyber Risk
“Cyber risk primarily refers to the risk posed to a business by a data breach or network compromise. These can occur as a result of human error, malicious actions by disgruntled employees, organised crime, acts of war, or nation-state disruptions.” — Insurance Council of Australia, Cyber Insurance: Protecting our way of life in a digital world, 2022
Don’t Take the Risk!
At Northern Insurance Solutions (NIS), we can’t stress enough the importance of speaking with our team about cyber insurance.
According to the Allianz Risk Barometer, cyber incidents are the top risk facing businesses globally.
Let our team guide you through the various options and help you bundle cyber insurance with your existing business coverage.
Call our Ayr office today at 07 4783 1310 to discuss Cyber Insurance.
Learn More About Cyber Insurance >>>
Tips for your Employees to Stay Safe Online
Turn on automatic software updates: this helps to patch up vulnerabilities and the automatic updates mean you don’t have to think about them.
Cyber training: teach your team how to identify common cyber scams such as phishing emails.
Use anti-virus software: this helps protect your data from malware.
Secure your devices: Use locks or encryption, and regularly back up your files.
Avoid public wifi: use a secure connection, as information can be easily intercepted on public wifi.
Regularly back up devices: recovering data can be expensive, so make sure you have your up-to-date documents backed up.
Switch on multi-factor authentication: provide two or more proofs of identity for better security.
Use passphrases rather than passwords: these are easier to remember and harder to crack.
Create a Cyber Incident Response Plan: don’t wait until it’s too late to create a contingency plan for your business.
Have an Internet and Social Media Usage Policy: Download an internet usage policy template that allows you to just replace your company name and share with your employees.
Read more about Cyber Insurance.
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