Cyber Insurance: Why you need it.
You would struggle to find a business these days that doesn't use a computer to send, receive and store data. A lot of this data will be sensitive, including client details, payment information, tax information, etc. Have you thought about what would happen and the costs incurred if this data was to be exposed, lost or hacked? We have listed a few examples of potential claims below:
Stolen Laptop: One of your employees has their laptop in the car while they are out to lunch. The laptop has access to your business network which holds your clients' sensitive data as well as some payment information. Cyber Insurance can assist by appointing IT professionals to potentially block the laptop's access to the network as well as cover the costs associated with appointing legal representatives to determine if regulatory notification is required as sensitive data has been compromised.
Extortion Attempt: You receive a ransomware email demanding a large payment of crypto currency or else all the data on your network will be lost. Cyber Insurance can help by appointing specialists to attempt to retrieve the data, or potentially pay the ransom to help secure your data.
Upgrade Error: A software update from a third party cloud service provider has been installed on your system and has caused you to lose your data. Cyber Insurance will assist by appointing IT forensics to help reconfigure any lost data from the most recent back up.
You might be thinking, this won't happen to me or my business. However, recent data shows that Australian Cyber Security Centre responded to almost 60,000 reports of cyber crime from July 2019 to June 2020, more than a third of these cases being fraud related.
With more and more of the Australian workforce working from home, the trend of cyber attacks is only going to grow. Cyber insurance is a cost effective way to protect your business from the hefty costs associated with data breaches and attacks on your network.
This article originally appeared on LARK Insurance | Insights and has been published here with permission.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by LARK Insurance.