Cyber Insurance for Business
Cyber Insurance is a specifically designed insurance product that can offer business of all sizes protection from risks associated with digital data security, IT infrastructure, internet trading portals, and digital exposure.
Almost every business is exposed to digital (cyber) threats these days, with an increasing reliance on data networks, cloud based technology, online communication and social networks. Cyber insurance is one way that you can help protect your business from unexpected loss or catastrophe. Todays media is filled with examples of digital threats posed to business and the fall-out from various cyber incidents, so we’ve compiled a small list of risks you may or mayn’t have considered:
Denial of service attack (DoS): Increasingly common and easily perpetuated, DoS attacks are often targeted at high profile businesses to take down their online systems and can be motivated revenge or blackmail or perhaps by activists. What is the cost of business interruption? What is your exposure if you cannot fulfil your responsibilities to customers?
Data Breach: Australia’s new data security laws require mandatory data breach notification, which can require (among other things) a business to contact and inform all those for whom data has been breached. “Data” can include any type of personal information, including something as simple as an email address. With most businesses keeping some type of customer information on file, these tough new laws drag almost all businesses in to the realm of cyber threats. If hackers can access the Pentagon – it pays to be realistic about how easily your businesses data security could be breached. What is your liability exposure? What are the costs of investigative measures, audits, or defamation?
Cost of post threat PR: Often the best practice is to immediately get on the front foot with positive public relations following a digital ‘incident’ or in your business. Whether it’s a fat finger typo or a big data slip-up, most customers and the public generally can be won back with the right crisis management PR approach. Of course PR restitution for your business can cost a lot of money too – think about your cost exposure.
Liability for errors or omissions: What happens when you accidentally delete all your customers data? Or you post on social media something that inadvertently causes loss to one of your users? Most people realise that liability exposure can be a big one, but does your standard business insurance cover the type of digital threat that could bring any small business undone? Some business liability products exclude digital threats or don’t allow for emerging cyber exposure.
Extortion by hackers: Businesses can often be the target of extortion attempts by criminals who can access and lock computer systems through common viruses. They know that that a businesses person who is losing money hand over fist while unable to access their business records or customers files is a relatively easy target for extolling money. Police are often unable to intervene quickly leaving businesses with a difficult choice – pay up or risk losing everything. What is your exposure if you face an extortion attempt? What professional fees are you likely to incur dealing with such a treat (lawyers, accountants, IT etc)?
1300 Insurance can assist with cyber insurance and general business insurance solutions for all types of business. Please contact us to discuss the best type of insurance package to suit your business.