The need for Cyber Insurance

In our increasingly complex, fast-changing technological world, privacy and security threats are ever-present, real and can be costly.

The last 12 months has seen a significant jump in SMEs being hacked. These businesses are most vulnerable as they don’t have the sufficient resources or infrastructure to respond to such an event.

Cyber attacks can include hackers with malicious intent on your business, while the majority of cases are due to your employees’ errors.

At Maxton Insurance Brokers, we can arrange a Cyber Insurance policy that offers you the protection you need against risks such as computer hacking, data breaches, data losses, data theft, ransomware and human error.

Should you have Cyber Insurance?

Every business relies on technology these days. Whether that is electronic records, information stored in the cloud, websites, online ordering, electronic payment systems, email systems and a social media footprint.

Data breaches and cybercrimes can be costly and very damaging for an SME. In fact, 60% of SMEs go out of business after a cyber attack[i] . Insurance designed to protect business from these scenarios is essential.

Could your business recover from a significant cyber-related incident without insurance?

Why do I need a Cyber Insurance policy?

Cyber attacks and data breaches are in the top three risks in the world for businesses[ii].

Criminals are becoming more sophisticated and incidences are increasing for SMEs. Cyber attacks are all too common and the impact is detrimental.

By taking out a Cyber Insurance policy, it can provide protection for businesses to minimise disruption and the impact of a cyber attack.

What protection does comprehensive Cyber Insurance provide?

A comprehensive Cyber Insurance policy provides cover for your losses and expenses, and third-party liabilities from unauthorised access and use of data or software within your IT infrastructure.

A policy may provide coverage for the following:

  • Point of sale (PoS) intrusions
  • Cyber espionage
  • Miscellaneous errors
  • Cyber extortion
  • Web app attacks
  • Physical theft and loss
  • Hacking / crimeware
  • Insider and privilege misuse
  • Payment card skimmers
  • Denial of services (DoS)

Comprehensive Cyber Insurance coverage covers:

  • Losses to your business – costs and revenue replacement cover.
  • Loss to others – sums you become liable to pay, including regulatory fines, penalties and litigation costs.
  • Cyber event response costs – costs to respond to a cyber event, such as virus extraction, securing/ restoring your data and notification/ PR costs.

Optional covers are available for business interruption, cyber theft and physical damage to your IT infrastructure.

[i] Telstra cyber security report 2018

[ii] World Economic Forum 2018

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