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Why your business needs cyber risk insurance

  • Adroit Insurance and Risk
  • August 15, 2016

If you’ve ever thought that your business is too small to be at risk of a cyber attack, you are dangerously wrong. In fact, it is this way of thinking that makes your business an easy target.

Today our dependence on technology couldn’t be more obvious; we are reliant on it to organise our lives, to communicate and socialise, and (most importantly) to help run our businesses. With the power we place in the hands of technology, it comes as no surprise that cyber hacking is becoming an increasingly lucrative trade. According to a study by cyber security firm Symantec, 53.6% of spam attacks targeted SMEs in June 2016. What was once a fear reserved for larger corporations is now rapidly evolving into a threat for all businesses, especially smaller ones.

If you’ve ever thought that your business is too small to be at risk of a cyber attack, you are dangerously wrong. In fact, it is this way of thinking that makes your business an easy target. According to Justin Schembri our Traralgon Branch Manager, “a lot of businesses have said ‘I’ve got virus scanners, I’ll be alright’ – but it’s just not like that any more.” If your defences are low, you are leaving the door wide open for a hacker to disrupt your business, giving them access to the information you have built up over the years.

What exactly does a cyber attack look like?

Extortion, business interruption, a blow to client confidence, a loss of data – these are just a few examples of ways a cyber attack can leave any business in ruins. Damon Edwards, Branch Manager of Adroit Insurance Ballarat, says that cyber crime “is the fastest growing crime in the world. So to ignore this is to bury your head in the sand.” By invading your private data, hackers have the ability to use information against you through means such as blackmail, accessing bank accounts and credit card details (those of your business or even your customers) and even espionage.

Amid the confusion of a hack, your most valuable assets, including your databases that hold valuable customer intelligence, are at risk of being corrupted and even used against you.

To make things worse, it may take you weeks to completely recover from an attack, suspending your usual activities and draining your company’s income.

What can you do if your business is hacked?

The problem is that many SME’s don’t realise that they even exist on a hacker’s radar so naturally, the first step is recognising this and taking steps towards safeguarding your databases and online intelligence.

It is also crucial to ensure that cyber risk is part of your insurance solution. Even when you have effective defence measures in place, you are only mitigating your risk, not entirely eradicating it. Preparing for a cyber breach before it happens however can help you recover from a potentially disastrous situation. Damon says that, “cyber security is an evolving risk that cyber insurance seeks to provide further protection for, should the unexpected happen.” Making room for cyber risk policies might mean the difference between a small blow to your business and an irreversible disaster.

The truth is, you can never be too protected. Even if your system is secure, there is still a chance you could be hacked. Especially with the rate at which technology changes and develops, hackers are constantly on the lookout for innovative ways to attack businesses for quick cash. Updating your insurance solution to include a cyber protection policy means that if you are hacked, you can still recover. To learn more about Cyber Risk download our free kit today.

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