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The Threat is Real: Protect Your Business From Cybercrime

April 3, 2017

cyber insurance

Did you know that in 2014 33% of Australian businesses experienced some form of cybercrime? That’s a total of 693,053 companies that were victims of cybercrime in a one-year period. Of these, 11,703 companies reported the incident, and 153 cases resulted in critical damages.

When you look at the bottom line, 153 businesses experiencing serious losses as a result of cybercrime may not seem like a lot, but what would you do if your business were one of those 153 companies? The average cost of a cybercrime attack on Australian businesses is $276,323, 53% of which is dedicated to detection and recovery. This will disrupt your business, result in a loss of important information, reduce productivity, damage equipment, and ultimately cause a loss in revenue.

Can you afford to shoulder losses of that magnitude?

Most small to medium businesses aren’t equipped to deal with a large-scale cybercrime attacks, which is why cybercrime insurance is essential.

What is Cybercrime?

Cybercrime refers to criminal acts that use computing devices and the data that they store and manipulate. This could be as simple as a virus or phishing scam, or as severe as malicious code or a web-based attack that compromises the security of your business.

As more and more businesses make the switch to paper-free offices, our environmental footprint is lessoning, but our protection against cyber criminals is decreasing. Back in the day, if somebody wanted to steal confidential client information, or gain access to your financials, they would have to break in, or infiltrate your business. Now, a malicious online attack is all it takes to compromise your business.

How Will Cyber Insurance Protect my Business?

If your business falls victim to cybercrime, cyber insurance will protect you financially, ensuring your business is equipped with the necessary funds to overcome the attack and return to normal operation.

At Sydney Insurance Brokers, our comprehensive cyber insurance policies will cover your losses, and allow business to return to normal. Our cyber insurance packages include the following schemes:

 

  • Business Interruption – covering losses incurred following a breach, and while the network is being repaired and restored to use.
  • Intellectual Property Indemnity – covers you against the costs of defending claims by 3rdparties for using online multimedia material in breach of a 3rd party’s intellectual property rights.
  • Extortion – some policies can cover you for ransom payments deemed to necessary to resolve a threat.
  • Costs of Regulatory Intervention – depending on the nature of the breach, a data regulator may investigate it, and this can entail significant costs to the business. This is an insurable risk.
  • Remedial System Engineering – data breaches can leave a business network in disarray, and the business of restoring it to health can be costly. A good cybercrime policy must cover these costs.

When it comes to cybercrime, you wouldn’t be alone in thinking ‘it could never happen to me’, however, the stark reality of the online sphere is that cyber criminals could target your business, whether randomly or intentionally. Ensure you’re protected, by talking to Sydney Insurance Brokers today.