Cyber protection insurance is designed to help protect your business from the financial impact of computer hacking or a data breach.
Hack attacks, ransomware and phishing are just some of tools the cybercrimes use against small businesses that can expose them to data theft, extortion or even business failure.
There are many steps businesses can take to reduce these risks and potential damage in the event of an attack.
There are many steps businesses can take to reduce these risks and potential damage in the event of an attack. There are lots of different ways criminals attack businesses online.
The Australian Cyber Security Centre (ACSC) has categorised the three main cyber threats small businesses face as malware, phishing scams, and ransomware.
TOP TIPS TO STAY SAFE ONLINE
Prevention is always the best form of protection. Here are some quick wins to help keep yourself and your business stay safe.
- Cyber training – teach your team how to identify common cyber scams such as phishing emails.
- Use anti-virus software – this helps protect your data from malware.
- Secure your devices – Use locks or encryption, and regularly back up your files.
- Avoid public wifi – use a secure connection, as information can be easily intercepted on public wifi.
- Regularly back up devices – recovering data can be expensive, so make sure you have your up-to-date documents backed up.
- Switch on multi-factor authentication – provide two or more proofs of identity for better security.
- Use passphrases rather than passwords – these are easier to remember and harder to crack.
- Create a Cyber Incident Response Plan – don’t wait until it’s too late to create a contingency plan for your business.
CASE STUDY 1
An accountant was the subject of a ransomware attack.
In this hypothetical example. The criminals encrypted the network data, locking the business out of its system and disrupting normal operations. Sensitive client data was compromised in the process. The accounting firm had taken out cyber insurance.
So it was covered for the cost to forensically investigate the breach, the legal costs associated with prosecuting the criminals, as well as paying for the funds to settle customers claims.
The insurance policy also met the costs associated with notifying government bodies and regulators of the breach. While prevention is better than cure when it comes to cybercrime, having insurance cover in place meant the business was able to appropriately defend the attack and recover from it.
CASE STUDY 2
Your employee opens an email attachment infected with a ransomware virus.
Access to your systems and data are blocked and the virus software informs you that it will remain unavailable unless you pay the ransom amount.
Rather than paying the hacker and opening your business up to further extortion attempts, you hire external IT consultants to recover your back-up data and files and upgrade your antivirus software.
Over the week it takes to apply these fixes, you have to close your business, causing you to lose revenue. It also a affects your reputation with your clients; one of your clients threatens to sue you for the delay which cost them a large amount of money.
A Cyber Protection Insurance policy allows you to recover some of the costs you incur during this incident. Depending on your policy, you may be able to make a claim for losses caused by the interruption to your business, the costs of recovering your data and upgrading your software, and ongoing crisis management expenses.
About the Author
Pat Marzico is the principal insurance broker at Image Insurance Brokers in Melbourne, bringing over 25 years’ experience in the general insurance industry and a deep commitment to helping businesses find tailored, cost-effective coverage. With a background spanning motor and commercial insurance, Pat combines practical insight with a client-first approach to protect what matters most for businesses of all sizes.
If you have any questions regarding cyber insurance or any other insurance questions, please get in touch with Pat Marzico here.