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3 Reasons Why You Need Cyber Insurance

We all think we are invincible, that a terrible thing like being hacked or some sort of cyber-attack is never going to happen to us. The Optus hack has us all rethinking that!

Business owners have moved from thinking “It won’t happen to us, we’re too small” and instead are asking “Are we protected?”, “What happens if we are hacked?”. This is where Cyber Insurance comes in. 

We know that technology will continue to evolve at a rapid rate. As will the skills and tactics of the people and organisations who undertake cyber-attacks! 

So losing access to emails, payment systems or customer data stolen by hackers is a possibility and, unfortunately, will start to occur more frequently.

Read on for more information about the 3 reasons why you need cyber insurance.

1. Cyber Insurance provides financial reassurance

Hacking, cyber crime and cyber interruptions come in many forms. Just say your payment system is compromised and you can’t transact business for a period of time. Or possibly you lose access to the IT systems that enable you to operate effectively, like processing orders. You could also face extortion attempts to recover access. Lost revenue has a significant impact on any business’s bottom line, and could impact your ability to continue to operate. 

Cyber insurance covers financial loss and expenses that businesses may suffer because of a cyber-crime. This financial security ensures your business is resilient should a cyber incident occur. 

2. Cyber Insurance helps you respond to a privacy breach

With a cyber-incident, there’s often a privacy breach – i.e., private, or confidential information and data is exposed.  

Responding to a privacy breach includes many actions, and is complex. A business can quickly incur significant costs and chew up available internal resources when responding to this type of breach. 

Cyber Insurance can support a business to cover actions like:
  • incident response and accessing 24/7 emergency support
  • notifying third parties 
  • performing computer forensics 
  • liability from third party claims  
  • recovery of data
  • regulatory fines.

3. Cyber Insurance is the right step in protecting your reputation

Should your business experience a cyber event, you want to be on the front foot. Informing authorities and those who may be impacted as soon as possible. The way you respond to an event will impact your short and long term reputation. 

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.

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.

Purchase up to six products under one Business Insurance Package. 

Should your business experience a cyber event, you want to be on the front foot. Informing authorities and those who may be impacted as soon as possible. The way you respond to an event will impact your short and long term reputation. 

To minimise any impact you’ll likely want to engage a Crisis Communication, PR or marketing expert. These professionals have the experience that can help you quickly and effectively manage the messages to customers and the media, your reputation and advise on changes to your customer experience. All activities that can minimise damage to both your short and long-term reputation. 

Having comprehensive Cyber Insurance means that you can afford to access professional support. 

Insurance is about prevention too!

There’s plenty more than 3 reasons why you need cyber insurance but at Oracle Group, we know that you’d prefer prevention. 

We are also strong believers in prevention. That’s why we work with a range of IT businesses to look at how our clients can mitigate their cyber risks. As part of our risk reduction approach we support clients to help create a robust Cyber risk plan that looks at prevention and then ensuring the right protection is in place if something occurs.

If your business is unfortunate enough to experience a cyber-attack, good insurance is vital to get you back up and running quickly. 
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.

Scott Wilford, Oracle, ABN 75 131 025 600, AFSL 363610

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

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