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Don't have Cyber Insurance? Not a risk worth taking.

Cyber Insurance
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In an era driven by technology, digital infrastructure and online data underpins the operations of businesses of all shapes and sizes in some form. While this is a major driver of efficiency, this also means the risk of a cyber-attack looms larger than ever.

Cybercrime has been on the rise for decades and businesses who find themselves on the receiving end of an attack can suffer major disruption, significant financial losses and reputational damage, not to mention the legal liability of third-party losses.

While the threat of cybercrime keeps many Aussie business owners awake at night, rest assured there are measures you can take to help minimise the financial cost and stress to your business in the aftermath of an attack.

Exploring the Rise of Cyber Threats Across Australia

According to the latest Annual Cyber Threat Report, the Australian Cyber Security Centre recorded 76,000 cybercrime incidents in the FY21-22 peropd. This is a 13% increase from the previous financial year, and an alarming rate of one cybercrime report made every seven minutes.

Over the past twelve months, there has been a significant increase in cyber-attacks against small businesses, and the trend is showing no signs of slowing down as small businesses become more and more reliant on technology and cloud services.

Identifying Potential Cyber Risks for Your Business

Personal information, customer records and business data can be highly lucrative for cyber criminals, and is a key driver behind the every increasing attacks on businesses. Common methods to achieve this include:

  • infecting computers with malware (such as viruses, ransomware, and spyware) and requesting a ransom payment to restore the system
  • attacking your technology or website
  • attacking other third-party systems
  • sending emails that contain malware
  • gaining access to your information through your employees or customers -otherwise known as social engineering.

It is important to be vigilant about the risks of cybercrime. Understanding your business’ vulnerabilities is the first step toward mitigating cyber risks. Common vulnerabilities include:

  1. outdated software
  2. weak passwords
  3. lack of employee training
  4. insufficient network security

To address these vulnerabilities, there are a number of things businesses can consider:

  • Regularly updating software and systems to patch known security vulnerabilities.
  • Enforcing strong password policies and multi-factor authentication.
  • Educating employees about phishing scams, social engineering, and safe online practices.
  • Conducting regular security audits and penetration testing to identify weak points in your network.

A Robust Cyber Insurance Policy Should Always Form Part of your Cyber-Risk Management Plan

While there are several risk management strategies that can, and should, be implemented to safeguard your business, no security can ever be 100% foolproof.

Cyber Insurance is an essential layer of financial protection that can help your business weather the storm of a cyber-attack, while minimising the cost to recover in the aftermath.

While policy coverage varies between different insurers, Cyber Insurance can cover a wide range of exposures, including:

  1. Business Interruption costs arising from losses incurred due to the attack.
  2. Expenses related to the loss and recovery of data.
  3. Costs associated with incident response and investigations.
  4. Costs associated with managing crises and mitigating damage to your company reputation.
  5. Liability resulting from the accidental disclosure of confidential data.
  6. Liability arising from unauthorised network usage.
  7. Ransom demands or blackmail related to network or data security.
  8. Expenses incurred in handling regulatory investigations.
  9. Legal expenses incurred

How Your Broker will Help Navigate this Complex Class of Insurance

As a busy small business owner, you don’t have the time to scour the vast insurance market for your perfect policy, let alone wrap your head around the complex insurance terminology. iNeedCover advisors do the hard work for you; ensuring your equipment, assets and reputation are protected with quality Cyber Insurance, based on your specific needs.

When you pair up with an iNeedCover advisor, you get protected by an insurance solution designed for you:

  1. After gaining a comprehensive understanding of your business’ unique needs and potential risks, iNeedCover advisors will tailor a cyber insurance policy to suit you.
  2. Our professional advisors navigate the complex structures of different Cyber Insurance policies on the market to provide you with the most cost-effective options to meet your specific business requirements.
  3. In the event of a claim, you’re never on your own. Your broker is your first point of contact, advocating for you in a claim, and managing the claim process on your behalf from start to finish. They work for you to achieve the best possible outcome, keeping you in the loop at every step of the way.

Protect Your Business – Connect with an iNeedCover Insurance Advisor

As the sophistication and frequency of cyber-attacks only continues to increase, Cyber Insurance should be top of mind when considering insurances to protect your business - it’s not a matter of if, but when.

INeedCover will pair you with your perfect advisor to ensure your business insurance is based on reliable human advice, not hope.

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.

Information is current as at the date the article is written as specified within it but is subject to change. Community Broker Network Pty Ltd t/as iNeedCover and Community Broker Network Authorised Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Community Broker Network Pty Ltd.

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