cyber security insurance
Just like you wouldn’t go without home and contents insurance or motor vehicle insurance, you shouldn’t go without cyber security insurance. Cyber security insurance can protect you when there is a security breach and save you a lot of time, money and headache. Plans are relatively cheap and you will have peace of mind that your business is protected. Similar to other insurance policies, there are things that a cyber security insurance policy will cover and things that it won’t. Before you sign up for a policy, it’s important to know exactly what you are covered for and what you are not covered for so you can make an informed decision about which policy to choose. A good cyber insurance policy will protect you from internal losses caused by a cyber event that compromises your business. A cyber event that compromises your business could include a hack through malware, spyware or another type of software. It also protects you from cyber extortion and social engineering meaning that your business will be protected should your cyber systems be threatened by an outside attack.
Your business could be significantly hurt if you did not have cyber insurance and depending on how much money you lost you could end up losing your business. Cyber insurance is so important in this day and age when businesses rely on the internet to successfully manage their business. Without cyber insurance you will not be covered if something was to go wrong and your business was attacked by an outside force.
Sometimes cyber attacks are about accessing data so if you lost your data that could destroy your business’s reputation or you could lose the data depending on the severity of the attack. When you have a good cyber insurance policy you will be covered in case your data was compromised which will help you build a good reputation amongst your customers and protect you if something went wrong.
This leads to the next reason you need cyber security insurance. Imagine someone peeping through your window watching every move without you even knowing. That can, and does happen through the internet. A privacy breach could cost your business millions of dollars per breach and that’s not including the reputational damage to your business, so it’s imperative that in addition to robust security systems, you also have a cyber insurance policy that covers you for such things. Cyber insurance helps you because in addition to your other insurance policies covering tangible assets, you can now protect your intangible, and sometimes more valuable assets from an attack. It can also cover any costs that you may have incurred as a result of the privacy breach such as fines and penalties or the costs involved in fixing the issues with your cyber security.
Cyber fraud has been a huge issue over the last few years with it on the increase in Australia and internationally. Cyber fraud can take place in many different ways and in a best case scenario you would lose a few thousand dollars but in the worst case scenario you could lose all the funds your business has which could put its entire future at stake. When you’re protected from cyber fraud, your business will be covered if someone fraudulently accesses your business’s data or finances. That means you will be able to recoup the funds that were taken.
The biggest problem that businesses faced at the height of the Coronavirus lockdowns was that they had to close their physical doors meaning that they had to stop trading or if they had the capacity they could only trade online. Their website effectively became their shopfront and without it their business would have been sunk, as many bricks and mortar stores were. Given the importance of your website it has never been more important to protect your systems and whilst you can’t necessarily stop cyber attacks from happening, you can minimise the damage they cause by getting a cyber security insurance policy that will protect your business. Just because you can’t see your store doesn’t make it any less important than a physical store. In many ways it is more important because it is an international store that you can operate wherever you go, so just like your house, you need to protect it with insurance that will help you should something go wrong. The worst thing that could possibly happen is that your business couldn’t operate for a while. That could cost you thousands of dollars everyday and your business may never recover. It is not worth the risk.
If you run an ecommerce store then you’ll undoubtedly be dealing with payments from clients. Clients are trusting you with their most personal information and their money. If there was a data breach involving credit card details your business would be in major trouble however with cyber insurance you can be protected should that data fall into the wrong hands.
Cyber insurance covers many different areas and the policies are customisable based on what is of particular concern for your business. Without cyber insurance you could be at a greater risk of a law suit or losing your entire business if something did happen and your security was compromised. If there is anything 2020 has taught us, it is that we are more reliant on technology than ever before and it is not worth the risk to operate without it. We’re available 7 days a week to chat to you about cyber insurance policies and what they cover. We can also help recommend a provider that will best suit your needs.