It’s still a bit surprising how many business owners don’t consider the risks they are exposed to when it comes to cybercrimes.
Too many owners believe that they don’t have enough exposure to digital information to be at any meaningful risk.
But, in reality, any business that stores any kind of client data or sends out emails to clients and vendors, is exposed to significant financial losses even if they are a victim themselves.
Whether you’re an accountant with personal information and confidential data from hundreds of clients, or you’re a plumber that sends out invoices by email, it’s one type of insurance policy you shouldn’t ignore.
What Is Cyber Insurance?
Cyber insurance policies are designed to protect large and small businesses from the potential financial costs related to a cyber incident.
In general terms, these types of incidents relate to data breaches, hacking, or other malware that puts any third party information at risk of being exposed or where a cyber attack results in money being transferred to a fraudulent account.
With recent changes in legal requirements, any cyber security breaches have to be reported to the government within 30 days.
Not only could you be exposed to cyber liability to dozens or hundreds of clients, but you could also face situations where business interruption becomes a crippling cost.
And the unfortunate reality is that you may be as much a victim in these situations as the clients whose data has been breached.
Cyber security insurance policies have been designed to protect you from the financial fallout from such incidents so that you can focus on getting your business running again without having to worry about whether it will be able to cope with the losses from claims, fines, and penalties.
If you’d like to get a better understanding of how a cyber insurance policy could protect your financial interests, contact one of our brokers today on 1300 886781.
What Risks Does Cyber Insurance Cover?
We have been following the impacts a cyber attack can have on business operations, and in recent years it has become an increasingly more serious and common problem.
Business interruption has turned out to be one of the main problems as one of the first responses to a cyber attack is often to stop all digital communications.
But we have also encountered four main areas where the costs of third party claims have resulted in serious losses.
Here are four types of cyber risks we have encountered with businesses of all sizes.
1 – Business Email Compromise
This has become an increasingly costly problem for large and small businesses.
It usually involves some form of hacking into the email system, which ends up with people receiving fraudulently created emails that look to be from a real person within your organisation.
In some instances, this has resulted in money being transferred out of the business before the cyber incident has been realised.
With a cyber policy in place, you would be covered for any forensic and technical costs, as well as financial losses suffered as a direct result of the event.
2 – Telephone Phreaking
This optional cover is specifically designed to protect against phone systems being hacked, which could result in certain calls being redirected overseas.
In some cases, this has resulted in tens of thousands of dollars in call charges that a business would be liable for.
But with the right policy in place, you’ll be covered for solving the problem and covering the losses that are directly tied to the phreaking attack.
3 – Cyber Theft
Many people only think of a data breach when it comes to cyber theft. But a security breach into many other systems could also result in serious financial losses.
One example is a fraudulently changed bank account number for a supplier, which results in money being transferred to the wrong account.
4 – Extortion Attempt
You’ll often hear about these problems in the news where someone has gained access to computer systems and is threatening to expose sensitive information.
Depending on the type of information at risk, such an extortion attempt could become a very expensive problem involving specialist IT support, public relations, data breach notifications, as well as penalties and fines.
While some business insurance policies have optional extensions to cover cyber liability risks, it’s still a good idea to consider taking out a specialised policy that better protects your financial interests.
Talk to one of our brokers today on 1300 886 781 for a complete assessment of your potential risks along with a no-obligation quote.
Team Up With Aspire Insurance
Through many years of building long term relationships with clients, we have created a service that goes beyond just providing you with new policy options.
Insurance claims can happen at the worst possible time, and the last thing you want to cause you stress is the processing of claims.
That’s why all our clients have access to our 24/7 support service to help you deal with claims in the most efficient way.
Carefully Chosen Policies
We will specifically choose policies that are designed to provide you with maximum protection, which will always take your individual business model and potential risk exposures into account.
Annual Cover And Premium Review
At each policy renewal, you will receive a full review of your policy, which will give you the opportunity to further expand your protection through other cyber insurers. It’s also a way to make sure you always get the most competitive premiums.
Face To Face Contact
We believe that the only way you can fully gain financial protection from cyber risks is by dealing directly with clients. That’s why we will never ask you to use automated online systems and will always deal with you in person.
Contact Us Today
Every business is exposed to some form of cyber risk these days, and if you have any concerns about your current business insurance not having you fully covered, then contact our dedicated team today on 1300 886 781.
You will receive a full policy review and a no-obligation quote that will be specifically tailored to your needs.