4 Reasons Why Your Business Needs Cyber Security Insurance

Most businesses use computers and the internet on a daily basis. It’s a big part of how they organise their day-to-day operations. They can use it to roster staff and keep track of inventories and expenses. They can also use it to market their brand and engage with customers and clients on social media.

It will make your life a lot easier, but it will also make you vulnerable to cyber attacks. Safeguarding your business from cybercrime, such as hacking and blackmail, is obvious. A standard Business Insurance policy covers a lot, but it won’t cover you if you fall victim to an online attack.

This is why you need to take out a specialised Cyber Insurance policy.

Cybercriminals are getting smarter and becoming more active in Australia. They now have many different ways of gaining access to your business systems and your client’s personal information. So, read on to learn about the 4 most common cyber threats your business could face, and how Cyber Security Insurance can protect you from them…

1. System Hacks

One of the most common forms of cybercrime is system hacking.

This type of hack is best described as occurring when someone gains unauthorised access to your business’s network uses advanced tech skills. They are often undetected, and once in, can do a range of damaging things from destroying files to exporting files – and even extortion!

If a business suspects or knows they have been hacked, the first response is often to pay for an IT expert or computer forensics consultant to access the situation and upgrade their security level.

If you’re a small business, this can be an expensive undertaking. But if your business has Cyber Risk Insurance, it will reimburse you for any financial loss within the time it takes to get your system back up and running.

2. Malware Attacks

Another regular occurrence in the world of cyber attacks is malware.

Malware is a malicious code or type of software that has been specifically designed to disrupt, damage or gain illegal access to someone else’s computer system. Malware can be uploaded to your network without your knowledge and often includes spyware, trojans, computer viruses, bots and ransomware.

Ransomware in particular is concerning. It means that an attacker gets access to your information and prevents you from accessing it. They can then demand payment in exchange for access (cyber extortion). Unfortunately, there is no guarantee that paying the fee will give you full access back, or that the perpetrator hasn’t already copied the information and circulated it on the dark web.

Business interruption will happen when your system becomes corrupted and you have no way of undertaking business operations until the issue is resolved. A customised Cyber Liability Insurance policy can cover the loss of any sales you would have made while your business was out of action. 

3. Phishing Scams

Sometimes malware isn’t planted secretly. Sometimes businesses download it themselves – although of course they didn’t know that’s what they were doing!

Phishing attacks use fake emails or texts to try and trick you into installing malware and revealing sensitive business information, including account usernames and passwords and banking details like credit card numbers.

These scams are clever, and are often disguised as coming from organisations or people you trust, such as employers and employees or government agencies. They use email addresses that look legit and messages that include official details, logos and letterheads.

Cyber Insurance will cover you for unfortunate outcomes like loss of transferred funds if a scammer does indeed get access to your financial information. 

4. Data Breaches

A data breach is one of the most worrying cyber events that could happen to a business with lots of customers, clients and partners on their books.

Confidential information like names, birthdates, home addresses, phone numbers, passport details, driver’s license numbers, government IDs, medical records and more can all stolen in an instant.

Not only is personal data theft and identify theft a cause for concern for the individuals directly affected, it can also do a great deal of damage to the business in question’s reputation. Think about the recent Telstra, Optus and Medibank data scandals and how the public and media perceived them.

If cybercriminals steal data or expose your business’s sensitive data, most Cyber Security Insurance policies will pay for the mandatory notification costs and provide monitoring services to track a company’s credit line following a breach. This helps to find possible data leak instigators and give customer’s peace of mind.

Speak to a B Insured insurance broker today for more information and to get your business covered for cybercrime.