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Can You Afford to Ignore Cyber Risk?

Managing cyber risk is essential for any business. According to the Australian Cyber Security Centre (ACSC), there were over 76,000 cybercrime reports in the 2021-2022 financial year. That’s one report every 7 minutes!

Moreover, the average cost per cybercrime is around:

  • $39,555 for small businesses
  • $88,407 for medium businesses, and
  • $62,233 for large businesses.
So, it makes financial sense to protect your business from cybercrime.
 
Insurers & Cyber Risk 
 
With increases in cyber-attacks, insurance underwriters are taking a closer look at your data security controls when evaluating your risks for cyber insurance.

At a minimum, they expect to see evidence of the policies and procedures you have to help prevent a cyber breach. These may include:

  • Multifactor authentication for web-based programs, like Office 365, Xero or other online accounts.
  • Regular Data Backup practices
  • Employee training on Cyber-attack prevention
  • Regular software security updates
  • Plus, a host of other preventative measures such as response plans, encryption, segregation of networks and more.
Without adequate controls, an insurer may refuse cover, charge higher premiums, or restrict your cover.
 
What Can You Do to Protect Your Business?
 
While no standard cyber policy exists, a comprehensive cyber insurance policy may provide the most complete coverage. The types of risk to cover may include:
 
  • Your liability

    • Such as legal fees, defence costs
    • Fines due to a data breach.
    • Contractual and non-compliance expenses due to a data breach.
    • Financial loss settlements to third parties
  
  • Your Response Costs

    • Engaging specialist help and advice – legal, PR, Investigative and negotiation services.
    • Issuing breach notifications to affected individuals, suppliers or other third parties.
    • Monitoring the data breach.
  
  • Your Operational Costs

    • Network repairs.
    • Data recovery costs.
    • Loss of income due to business interruption.
Whether you use a third-party service provider or manage your networks in-house, regulators are increasingly likely to take action against organisations that fail to implement adequate cyber protection. 
 

Purchase up to six products under one Business Insurance Package. 

Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.

Public Liability insurance is there to provide protection if someone makes a claim against the insured, the business or its employees.

Whether you use a third-party service provider or manage your networks in-house, regulators are increasingly likely to take action against organisations that fail to implement adequate cyber protection. 
 

Seek Professional Risk & Insurance Advice.

Your insurance adviser can guide you through cyber risk, provide tips on training staff and explain the most appropriate cyber insurance for your needs.

Contact Clear Insurance on 1300 721 132 or email info@clearinsurance.com.au for help. 
 
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Clear Insurance Pty Ltd. ABN 41 601 916 689. AFSL No. 548953. 

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Clear Insurance, ABN 41601916689, AFSL 548953

This article originally appeared on Clear Insurance Website and has been published here with permission.

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