AustBrokers Canberra

Cyber Insurance

The Digital Threat

Is it a reality that your business is at risk of a Cyber Attack?

In a recent survey conducted by Vero, only 25% of respondents admitted to being ‘very concerned’ about a cyber attack. It’s a percentage that appears to reflect the general sentiment in the SME community; but is it accurate?

When talking to local business, it would seem too many SME’s have the perception that their business would not be a worthwhile target for hackers. Many hold the view that their digital assets aren’t worth the cost of protection, as their real business takes place in a store or at a physical location. The reality is, though—most businesses today are exposed to some degree of cyber risk, and likewise need some form of cyber insurance. 

Even businesses that do the majority of their trading offline can still prove a very attractive target for cyber attack, and without the right protection in place, it can be disastrous. With many larger companies investing heavily in network security, often it’s small and medium sized businesses that can be the most vulnerable.

It’s also important to note, the threats aren’t always external. With a greater number of employees choosing to share details of their life—and working life—across a range of social media platforms, more and more companies are finding that their intellectual property and trade secrets are becoming accidental public announcements. It’s not always a malicious act, but the damage that might result can be just as costly to your business.

General Manager of Austbrokers Canberra, David Marjoribanks, wants businesses to know how important it is to seek advice from their insurance broker as to what cover is available and necessary, to offer some financial protection from a cyber attack. He explains:

‘Sadly, many businesses just don’t see how integral their online elements are. We’ve witnessed terrible cases where businesses have literally been held to ransom because their data has been compromised, and they are unable to access their online records. 

Even if you’re primarily a bricks and mortar business—the value of customer databases, credit card transactions and even your intellectual property, makes you a target for an attack. 

What will it cost you? For most, the damage to their reputation is very costly, but even limited damage could result in further litigation if privacy and credit information are breached. 

While cyber insurance won’t prevent cyber attacks from taking place, it will help you recover financially if you’re hit.’

What is cyber insurance?

Cyber insurance offers financial protection for your business in the event of a network security breach that results in loss of income, or that makes you liable in litigation.

 

Who needs Cyber Insurance?

If you take payments online, maintain a database (such as email), use cloud options to manage your finances or host a website, it’s likely that you will need some level of cover.

 

Want to know more?

A ten-minute chat with your broker is all it takes to get an understanding of your business's risks. To learn more, call your broker, or 02) 6140 8100 to be connected to our cyber insurance team.