BUSINESS INSURANCE

What is cyber insurance?

Scott Norton, Managing Director – Norton & Co Insurance

27 August 2020

Technology is an essential part of running a business, and it only plays a bigger and bigger role each year that goes by. That’s not to say it’s all positive development – as we use more technology, there’s also a higher risk of cyber-attacks. As a result, many businesses are now making sure they have their backs covered with a cyber insurance policy. What is cyber insurance, you ask? In this article, we’ll cover all the essential information on it and why you need one.

What is cyber insurance policy – in a nutshell

A cyber insurance policy is designed to protect a business from a breach of private information stored digitally. Cyber breaches deserve to be taken seriously – they’re one of the most expensive forms of risk facing Australian businesses today.

What’s more, cyber breaches are only bound to become more common. With the use of mobile phones and smart devices on the rise, there’s an increased number of sources to hack. That’s why businesses large and small alike need a cyber insurance policy.

If you thought cyber insurance policies are just for big corporations, think again. Here are some chilling stats on cyberattacks against small businesses.

  • 43% of cyberattacks target small businesses.
  • Only 14% are prepared to defend themselves.
  • More than half suffered a breach within the last year.
  • 60% of those went out of business within 6 months of the attack.

Source: CNBC

What does a cyber insurance policy cover? 

What exactly is covered in a cyber insurance policy will vary depending on the insurance provider, but here are some examples of what may be covered.

  • The business failing to protect private information
  • Data breaches
  • Business interruption losses
  • Computer hacking damage
  • Cyber extortion
  • Cost of IT expert
  • Security and privacy liability
  • Regulatory breach liability
  • Crisis management and other extra expenses

Naturally, small business owners are always evaluating cost when making any business decision. However, remember it only takes one successful hack to jeopardise your critical company data. Or worse, that of your business partners, suppliers and customers!

At Norton & Co, we create personalised cybersecurity policies based on your needs. Speak to our team today about a cybersecurity policy that protects your business and its future success.

General Advice Disclaimer

The information on this website is to be regarded as general advice. Your personal objectives, needs and financial circumstances were not taken into account when preparing this website content. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement and Financial Services Guide from Norton & Co Insurance before making any decision to purchase a financial product.

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