The uptake of cyber insurance in Australia is worryingly low which is concerning in the face of growing cyber threat. Only 14% of small businesses and 21% of companies in Australia have cyber cover.
The reality is, your business is almost certain to experience a cyber security incident, such as a data breach or ransomware attack. Without a sound risk management plan and insurance cover, an attack could seriously threaten your ability to do business and impact your bottom line.
5 reasons why you need cyber insurance:
1. Your staff rely on computers to get their jobs done
If your business uses any internet-connected devices for work, you need cyber insurance. Accessing the internet on computers or smartphones on or off your network – puts your business at risk of attack. No one is immune to cyber risk, and every company that’s using technology and the internet needs cyber insurance as part of an effective risk management plan.
2. Your company handles and/or stores personal data from clients and customers
Personal information about your customers is a valuable commodity for hackers so if you collect information, you’re a target for data breaches and other cyber security incidents. The Privacy Act stipulates businesses are responsible for ensuring the safety of people’s personal information. That should involve a risk management plan and cyber insurance.
3. You use cloud services
If you use the cloud in your business, you need cyber insurance. Personally identifiable information (PII) accounts for 70% of data being stored in the cloud. The cloud is a great for file sharing and collaboration, but without proper governance and cyber insurance, it exposes your business to a data breach.
4. Your business couldn’t financially survive a cyber attack
Cyber-attack costs can range between $200,000 and over $600,000 per incident – high enough to cripple a small business. This doesn’t account for the indirect, hidden costs of a cyber-attack which can include:
- Business interruption or destruction
- Reputational damage and loss of customer trust
- Insurance premium increases
- Lost contract revenue and loss of IP
- Damage to share price
5. Your existing insurance policies may not cover losses from a cyber attack
Some general business liability policies include cover for cyber liability, but many don’t. We urge you to check with your Phoenix broker to see if you’re covered.
Keep in mind, cyber insurance won’t protect your business from a cyber-attack. To properly protect your organisation and your clients, you need a comprehensive risk management plan.
For more information, give Phoenix Insurance Brokers a call today on 9367 7399.