In today’s digital era, where most businesses rely heavily on technology and store valuable data online, cyber insurance is becoming increasingly important.
Far from simply being an issue for large corporates, the instance of cybercrime in SME is growing rapidly. In fact, research conducted by Cybersecurity Ventures suggests that the global cost of cybercrime will grow to $10.5 trillion by 2025. Within Australia, its estimated that the annual economic loss from cybercrime is in the vicinity of $33 billion, with an average cost to business of between $50,000 and $100,000.
Along with the potential financial losses, there is also the reputational damage risk and legal ramifications, if you are hit with a cyber event.
Let’s take a look at the common cyber events to impact businesses, and how cyber insurance can protect you from long-term damage.
What is a cyberattack?
A cyberattack is an online assault launched by cybercriminals against either single or multiple networks or devices, often for the purpose of stealing, publishing, altering or destroying data. Cyberattacks can take many forms, some of which include:
- Phishing
- Malware
- Spoofing
- Man-in-the-middle attacks
- Zero day exploit
- Identity-based attacks such as identity theft
- Code injection attacks/SQL attacks
- Denial-of-service attacks
- Supply chain attacks
- DNS tunnelling
Anyone who uses a computer or personal device can be a victim of a cyberattack. However, the two main cybercrimes SME owners should be aware of are ransomware attacks and data breaches.
A ransomware attack involves your files being encrypted and rendered unusable, which can severely impact on your ability to operate. Business owners often pay a ransom to have their files unencrypted.
A data breach involves cybercriminals steal data relating to your business, customers and/or employees. This can then be used to facilitate identity theft, fraud or extortion.
Do I need cyber insurance?
Cyber insurance can in protect and support your businesses should you fall victim to a data breach or cyberattack. It can help to cover the costs associated with investigating and managing the incident, notifying affected customers, recovering lost data and managing legal claims. It can also provide coverage for business interruption, loss of income and even public relations activities.
By having cyber insurance for your business, you can mitigate the financial and operational risks associated with cyber incidents, ensuring you recover swiftly and continue to operate without significant disruptions.
Choosing the right cyber insurance policy can be overwhelming, but we are here to help. Talk to your broker and they will assess your risk exposure, analyse the available cover options, and provide expert advice to ensure you have the best cyber insurance policy in place. Reach out to your broker today or contact us.
