Don't be fooled by the misconception that only big corporations fall prey to cyber attacks. The truth is, small and medium-sized enterprises (SMEs) are just as vulnerable, if not more. But fear not! We're about to reveal how cyber insurance can be an absolute game-changer for SMEs.
Cyber attacks have been making headlines left, right and centre lately. We’ve all heard about the massive Medibank and Optus data breaches, and perhaps this coverage has led many business owners to think, “My business isn’t that big, so I won’t be a target of cyber criminals”. Unfortunately, this is a false sense of security. The Australian Cyber Security Centre ’s Small Business Survey found that 62% of respondents have experienced a cyber security incident, and in FY22, the average cost per cybercrime reported rose to over $39,000. That’s a decent hit to any SME, and one that can be avoided.
What is Cyber Insurance?
Cyber insurance will not only compensate you for the loss of funds and the costs of recovering from attacks but it will also provide you with a place to turn to when the loss happens. It’s also referred to as cyber security insurance and cyber liability insurance. Whatever you call it, here’s what it can protect your business against:
- Data breaches
- Data loss and restoration
- Business interruption
- Ransomware attacks
- Cyber extortion
- Privacy liability
- Regulatory and legal compliance
- PR and reputation management
Help! I’ve had a Cyber Loss - What do I do next?
Cyber insurers offer an emergency response service. You’ll have immediate access to specialist cyber and privacy lawyers, security forensic expertise and ransomware negotiation specialists. These experts will help remove any current threats, secure your business against further compromise, and provide priceless assistance and advice. This has already been paid for under the insurance policy so it is far cheaper than trying to engage your own IT providers and lawyers, who may not be specialists in this field.
Why Your SME Needs Cyber Insurance
SMEs are experiencing cyber losses at an alarming and increasing rate. Cyber criminals will proactively target small businesses because they may have weaker security measures in place and fewer resources to recover from a cyber-attack.
Let’s put it simply. Cyber criminals want to steal money or valuable business information, which they can then monetise. The impact of this is obvious. What may not be so obvious is the subsequent effects this can have on your business – damage to systems, corruption of data and lost time spent dealing with the fallout. Not to forget the reputational damage to your brand.
At BlueRock, we believe every business owner should have cyber insurance protection. This insurance should form part of any comprehensive insurance program, just as you would purchase business insurance to protect your physical property, or liability insurance to protect you from third-party exposures.
Does Professional Indemnity Insurance Cover Cyber losses?
Whilst some professional indemnity insurance policies can cover certain cyber losses, it depends on the specific policy and coverage. Professional indemnity insurance typically protects businesses and professionals against claims of negligence, errors, or omissions arising out of their professional services. While cyber losses may not be explicitly covered under a standard professional indemnity policy, some insurance providers offer optional or additional coverage for cyber-related incidents. We can help you work out whether you need additional cyber insurance protection.
Get in Touch with our Insurance Brokers to Discuss Cyber Security Insurance
If you don’t already have cyber security insurance in place, or perhaps you’re not sure if your coverage is adequate, talk to the team of expert insurance brokers at BlueRock General Insurance. The quoting process is straightforward – we just need a few key pieces of information, and we can generally turn around a quote for you within 24 hours. Submit the form below or give us a call to get started on your cyber insurance journey.
