Cyber Insurance – Why Small business should consider this.
Does your business rely heavily on Technology do you run a website, do you store documents in the cloud? Are you prepared for a Cyber-attack? Small Business has always assumed that big business will be the target of a cyber-attack from hackers. WRONG over 70% of Australian and New Zealand small business have been attacked in the past 12 months, it is believed that this is costing the economy around 1.8Billion and rising daily.
What is a Cyber-attack you ask? It can be an unauthorised person gaining access to your system. The theft or corruption of your data, viruses or malware infections on your system. It could also be a denial of service leaving your system usable. It can even be when your suppliers or services you use to run your business, sustain a cyber-attack resulting in them not offering you access to their services.
Another important factor since March 2014 a new Privacy legislation has come into force in Australia – breaches of privacy is another form of cyber-attack. Penalties for beaches are quite significant for individuals can be up to $300,000 and for companies $1.7million.
Business Insurance covers the Property and asses of your business – Cyber Insurance offers protection for you against tech related business interruption. Such as not being able to connect to the internet, to unable to connect to your emails, viruses or even having your website Hacked. Cyber insurance will even cover you if you outsource some of your tech requirements such as cloud based programs which go out of business, or are themselves a victim of a cyber-attack. It will cover you against the down time your business suffers.
Cyber Insurance also covers you against infringement of intellectual property, on line identity fraud, system suspension, theft of data, privacy protection and breach of cost, Cyber Liability and cyber extortion.
Some Cyber insurance will cover you for public relations cost – should your reputation be tarnished due a cyber-attack.
Cyber insurance is a necessary Insurance for all small business. It can be tailored to your requirements. If your business relies on technology you should consider cyber risk as an IMPORTANT part of your insurance portfolio, as chances are, you may be targeted at some stage in the future.
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Please be aware that any advice offered is General Advice only and has been prepared without taking into consideration your objectives, financial situation or needs. Before deciding to acquire a financial product please consider the Product Disclosure Statement and whether the product is appropriate for your individual objectives, financial situation and needs.