Why You Might Want to think about Cyber Liability Insurance
One of the biggest increasing risks for businesses in Australia is cyber security. The financial consequences can be severe – the average cost of a cyber incident in Australia is around $250,000. Ensuring that your business is protected against such risks is something most business owners need to prioritise.
A cyber incident might involve anything from sending information to the wrong person or using a picture without permission to more threatening scenarios. These might include the computer system being breached by a hacker or losing sensitive or confidential data. The ABS found that 10% of Australian businesses experienced a cyber security incident during the 2017-18 financial year. The data also showed that 18% of businesses were unaware if they had experienced such an incident.
The cyber security threat many of us think of first, is that of a hacker. Hacking can envelope a range of issues including the sharing or leaking of credentials and passwords. The rise of the Internet of Things (IoT) increases the weak points created through the automation of computer systems, allowing increased risks for important information to be accessed. The loss (as opposed to theft) of data is another threat that should also be considered. Mistakenly altered or deleted data can put stakeholder’s information at risk, not to mention the company’s financial interests.
Cloud Technology and Risk
The increasing prevalence of cloud technology, including software and storage, is also giving way to cyber security incidents. The nature of subscription-based cloud platforms involves the input of confidential access information (including personal and credit card information) to online servers. For this reason, cloud platforms and storage systems can be particularly appealing targets for hackers. Security and protection of your cloud systems is therefore imperative and speaking with an experienced IT advisor on the correct security measures is vital.
Cyber Liability Protection
Technological advancement of both hardware and software systems will lead to increased security. Even so, it is important that cyber liability insurance is utilised, as it provides effective protection against any impact resulting from any threat which may breach the system’s security. Cyber liability insurance provides you with protection from (but not limited to) the following:
- Liabilities that result from a cyber incident;
- Damage to technology systems (including loss of data);
- Fines resulting from a privacy breach.
One’s confidence in the safety of their highly developed cyber-security system is quickly nullified when a breach takes place. Unfortunately, the price and risk of not planning for the unexpected cyber-attack can be exorbitant. Every business is distinct; their technology systems and business operations present different security needs. Cyber Liability insurance policy provides the financial protection against these risks, no matter the complexity of the IT system.