Does your enterprise have business cyber insurance? It is a common misconception that this insurance is only for large technology companies. However, smaller organisations are more likely to become victims of cyber-attack.
If you don’t have an IT department or expert on the team, these cyber attacks can cause massive problems such as loss of data, business interruption, and trade credit issues.
Cyber protection insurance can cover the costs of restoring system backup data, removing malware, and recovering from a cyber-attack. Business cyber insurance is expanding rapidly and becoming increasingly sought after by small and medium-sized businesses, who are increasingly looking to insure their risk.
In this article, we will run you through why your business needs cyber insurance.
How You Are Vulnerable
There are various motives to cybercrime, whether they are trying to steal your data, get access to your money and bank accounts, want to bring down your operations, or if they want to hold your data hostage to earn money. However, in most cases, small businesses are just casualties in a broader cyber-attack plan.
Any business is vulnerable, but you are particularly vulnerable if tech is not your strong point and you don’t have an IT department to ensure your security. You can’t predict an incoming cyberattack unless you have controls and protection in place.
Protecting Your Business and Customers
Your business may store customer information such as names, emails, phone numbers, birthdays, and even credit card information. While this is used in your business to generate contacts or validate transactions, cybercriminals can also steal this data.
This is a huge liability to your business if this data gets stolen. Other than fines, you may even face lawsuits that can easily take down your small or medium-sized business.
Depending on the risk level of your business, cyber protection insurance can cover these costs.
How Owners Are Held Directly Responsible
Your customers expect you to protect their personal information, and you are held directly liable for breaches of your system. As the owner, you will be directly responsible for the safety of the data stored by your company.
It doesn’t matter which employee opened a compromised email or used an unauthorised laptop to enter the business framework. You are expected to hold safety measures and have a dedicated cyber security team to prevent data breaches and cyber-attacks.
Cyber insurance protects you if your security measures somehow fail and a cyber-attack makes a breakthrough.
The Role of IT Professionals and Security
Cyber insurance is not a replacement for a professional cyber security team.
In a small business, there are only a few people involved in information technology, so you can’t expect your IT guy to be able to do it all. The role of the cyber security team is to design and implement security controls and manage the processes such as backups and archiving.
In case of a cyber-attack or breach, they are responsible for restoring the data using the backups and getting the systems back online.
This is a tremendous job, and if you don’t have a dedicated team to handle these, you are vulnerable to cyber-attacks.
Cyber-protection insurance will cover the costs if your backup systems fail and you cannot restore your system quickly. Having no cyber security team may make your insurance cost more or make you unqualified for a cyber protection insurance application.
Conclusion
Cyber insurance may give you peace of mind, knowing that you are covered in case of a cyber-attack. This insurance is highly recommended for small and medium-sized businesses, who are vulnerable to cyber-attacks.
Cyber protection insurance covers a wide range of threats. It covers cyber-attacks, liability for data breaches, employee negligence, theft, and the cost to recover from a cyber incident.
Are you looking for cyber protection insurance on the Gold Coast? New Wave Insurance will help you find the right insurance to protect your business. Get your free consultation today!