Insuring your Business Against Cyber Crime Business Insurance Monday, 14 August 2017 It’s the newest threat to business and it’s gaining publicity for all the wrong reasons. Cyber crime is a real risk for any sized business across all industries. If your business doesn’t have insurance cover for cyber attacks, then you are at risk of loss and damages that could cripple your business. What is Cyber Crime? A cyber crime is any criminal activity using a computer or network connected device. Cyber attacks can take many different forms, including: Hacking: unauthorised entry to a computer system to steal data or change the system Virus & Malware: malicious software that can damage or compromise computer systems Phishing Emails: tricking computer users to reveal sensitive information such as passwords Denial of Service: flooding a system to overload it so legitimate traffic can’t gain access Ransomware: blocking access to a computer system until a ransom is paid to unlock it Identity Theft: using someone’s identity to steal money and obtain loans in their name Protection with Cyber Insurance Unfortunately, many cases of cyber attack are impossible to safeguard your business against. You can, however, take out insurance to cover the cost of damage caused. Some of the costs a business may occur following a cyber attack include: Loss of revenue or sales due to systems not being available Mandatory notification of customers advising of a possible breach of their details Public relations costs due to brand damage Consultant fees for data restoration Improvements to computer security to help guard against future attacks Any compensation, settlements, fines and court costs resulting from the attack General business liability insurance doesn’t provide coverage against cyber crimes because damage to property or persons hasn’t occurred. A dedicated cyber insurance policy is needed. You should make sure you have taken measures to protect your business as much as possible before applying for a cyber insurance policy including: Keeping anti-virus and malware programs up to date An off-site backup system so that data is restored quickly Up to date firewall technology to alert and prevent attacks Company policy about cyber security and regularly training staff to recognise signs of attack Requiring all employees to use strong passwords Security of devices when staff have taken them off-site Regular risk assessments and testing to check robustness of security Does your Business Require Cyber Insurance? If you are connected to the internet, use emails, store data or any kind of network/ computer use, your business is at risk of cyber crime. The level of risk is influenced by the size of your business, the amount of personal data you hold, the level of computer security and your industry. Different cyber criminals will target different businesses. Some are looking for the high rewards of stealing large volumes of data from big businesses. They know they can sell the data or ask a large ransom from a company that can pay. Criminals have a harder time breaking into systems of larger companies as they are usually better protected than smaller businesses. Some small business owners are unaware of the risks and how they can protect themselves against cyber crime, so they have few security systems in place. These businesses are easy pickings for a criminal with only limited skills needed to break in. If you are concerned about your level of protection against cyber crime, contact an experienced consultant at Knightcorp on 1300 656 001 or send us a message. Category: Business Insurance « Back
Helping small businesses prepare for natural disasters Tuesday, 14 June 2022 Climate change and other factors mean the risk of natural disasters adversely impacting small businesses is rising Category: News Read More
Your personal claims advocate Tuesday, 31 May 2022 We can help get you the best claims outcomes because we work for you, and not the insurers. Category: News Read More
What to expect from us! Tuesday, 10 May 2022 When you run your own business you have to work hard at it for 12 months a year. That's why you need insurance that works just as hard - without taking a break. Category: News Read More
Insurance for small businesses with flood risks Thursday, 07 April 2022 Flood insurance covers the situation when normally dry land is covered by water that has escaped or being released from a lake, river, creek or other natural water course, or a reservoir, canal or dam Category: News Read More