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I am a small business – do I need Cyber Insurance?

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Hey there, business owners. Are you aware of the importance of cyber insurance for Australian businesses? You might be surprised by just how crucial it is.

Let’s start with the basics. Cyber insurance is a type of insurance that protects businesses against losses caused by cyber attacks or other digital threats. This includes things like data breaches, hacking, and ransomware attacks.

Now, you might be thinking “my business is small, why would anyone want to target us?” But the reality is that cyber attacks can happen to businesses of any size, and the consequences can be devastating. In fact, according to the Australian Cyber Security Centre, the average cost of a data breach for large Australian business is over $2.7 million. For small businesses, it’s $276,323 – that’s a lot of money for a small business to lose and that’s just the average – the costs can be much higher for businesses that experience more serious breaches.

But the financial impact isn’t the only concern. A cyber attack can also damage a business’s reputation and trust with its customers. In today’s digital world, people expect their personal information to be kept safe, and a breach can lead to a loss of trust and potentially even a loss of customers.

So, what can you do to protect your business? That’s where cyber insurance comes in. Having a cyber insurance policy in place can help your business recover from a cyber attack by covering the costs of things like legal fees, customer notifications, and credit monitoring for affected customers. It can also help with the costs of hiring experts to help you respond to the attack and get your systems back up and running.

But don’t just take our word for it. Here are some statistics that highlight the importance of cyber insurance for Australian businesses:

According to the Australian Cyber Security Centre, 60% of small businesses that experience a cyber attack go out of business within six months.
In 2020, the number of cyber attacks in Australia increased by over 30% compared to the previous year.
A survey by the Australian Small Business and Family Enterprise Ombudsman found that only 43% of small businesses in Australia have cyber insurance.

These statistics show that cyber attacks are a growing threat for Australian businesses, and having cyber insurance can make a huge difference in the event of an attack.

The long and the short of it is if you’re a business owner in Australia, it’s important to consider getting cyber insurance for your business. It might seem like an added expense, but the peace of mind and financial protection it provides is well worth it. And with the increasing frequency and severity of cyber attacks, it’s a smart investment to protect your business.

Management Liability Insurance

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

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Business Insurance

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

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Business Package

Purchase up to six products under one Business Insurance Package.

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Don’t wait until it’s too late – get in touch today to learn more about cyber insurance and how it can protect your business.

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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.

Laura Meyer, MeyerInsure, ABN 87 340 928 486, AFSL 233750

This article originally appeared on MeyerInsure Blog and has been published here with permission.