If you’re considering getting Cyber Insurance, it’s helpful to get all the facts before investing. It’s a relatively new type of insurance so it’s crucial to understand if it’s right for your business and what it’s able to protect you from.
Of course, sifting through the information can be complex and overwhelming. We’ve broken down the key things to consider before purchasing Cyber Insurance to make sure you’ve got all your bases covered. And if you have any more questions, talk to one of our expert insurance brokers.
Make Sure You’re Protected
Cyber Insurance provides protection after a cyber event, and is critical in the digital age, but prevention is better than cure. Antivirus softwares, training your staff in cyber safety, using firewalls and backing up important data are just a few ways in which you can decrease your risk of a cyber breach.
While prevention will significantly help to reduce the chance of a cyber attack, it isn’t fail proof. Having a good IT provider and robust security, cannot guarantee that your system won’t be compromised at some stage. This is when you need Cyber Insurance.
What Businesses Should Have it
Whether you’re a large company or a small business, you could be the target of a cyber attack. Without Cyber Insurance, your company can suffer significantly from a cyber breach, both financially and legally.
Generally speaking, if your payment process is online, you use cloud systems to store company data or you have client information in your databases, you should have Cyber Insurance. These are the things that, if hacked, can be extremely detrimental to your company.
The Risks You Run Without it
The current regulatory framework surrounding cyber attacks and breaches continue to evolve with Mandatory Data Breach Reporting Requirements now forming part of the Privacy Act. Failure to do so can result in fines of up to $360,000 for individuals and $1.8 million for businesses.
If you’re the target of a cyber attack, it could lead to the destruction of critical digital assets, damage to business reputation and recovery costs. You could also be liable to others, so it is important you protect yourself, your business and your employees.