Should I get Cyber Insurance for my Business?

We've had a few inquiries recently about whether it's worth getting Cyber Insurance to keep businesses safe from cyber incidents. Insurance isn't our area of expertise, so we've asked insurance expert Todd Ferguson from Allsafe to give us a run down of how Cyber Insurance can ensure peace of mind for business owners.

 Technology in the 21st century has opened up many possibilities for streamlining greater efficiency, production and processes for businesses. However, as life starts to transition rapidly into the digital world, so does the risk of cyber breach. So let’s discuss the importance of cyber insurance and its advantages.

 

In 2014, it was calculated that 1,131 cyber incidents were reported through the Australian Signals Directorate (ASD) – an Australian Government Intelligence Agency tasked with ensuring our information security. This figure was a 20% increase from the previous year and these statistics prove that as the move into digital and cloud-based services starts to gain momentum, so does the increased risk of cyber-attacks.

 

Did you know that many major companies have in fact been hacked in the past?

 

Familiar names and brands such as Nike, the FBI and in one now infamous incident, Sony Pictures. During this episode involving Sony Pictures, it was believed that North Korea had hacked the multi-billion dollar company and stolen vital information from the controversial movie ‘The Interview’ – a fictional movie on the assassination of the North Korean supreme leader. More recently, Australia’s Bureau of Meteorology (BOM) was hacked, as was (very publicly) the Australian Census website, which had the nation questioning the Australian Cyber Security Centre.

Today, statistics show that 1 in 3 businesses are or have been hacked, with 40% of this figure representing small-medium (SME) sized businesses. Ultimately, this then means there are three different types of businesses; companies that have been hacked and are aware of it, companies that have been hacked but are unaware and companies yet to be hacked. If your business suffers a cyber-attack or breach, the following can be compromised:

 

  • Sensitive or confidential data stolen or revealed.
  • Software can be disabled or held to ransom.
  • Personal data belonging to your customers can be stolen.
  • Share prices may decrease as stakeholders lose confidence within a company.
  • Lawsuits which may give rise to other liabilities.

 

You may be thinking, “It’s ok, I have the top of the line malware for my business, my IT provider said so”. Like fire insurance for your business and so many other unforeseen events, even if you have the best software protection money can buy, you still run the risk of being compromised. Human error alone (which we will discuss in our next post) accounts for nearly 30% of all Cyber Insurance claims see through our office in the last 12 months. Cyber insurance is the best way to protect your businesses online data and presence in the long run. Simply speaking, cyber insurance will cover your business for the situations which are listed above and many more, as opposed to having to foot the bill if you are relying solely on your existing software security.

Cyber insurance gives you the chance to know that your business, and the businesses you look after, are in safe hands when things go wrong. So whether you’re in business with aviation, agriculture, construction, marine, trades or property, Allsafe has a cyber-insurance specifically tailored for you and your business.

 

If you'd like to know more about Cyber Insurance, you can contact Todd by visiting the All Safe website or ring All Safe directly on 1300 908 404.

 

Picture of Ben Love

When not looking at ways to use technology to create a competitive advantage for his clients and build better businesses, Ben is a husband, busy father of boys, avid gardener, and keen runner and cyclist.

share the love

Recent Posts