Top 5 Reasons Why Your Business Needs Cyber Insurance

The digital age has opened a lot of doors for businesses and as technology has evolved, businesses have embraced the fact the once complex tasks are now simple and a wider customer base can be reached. However, there are also a number of risks which come of an increasingly digital landscape and many businesses are falling victim to cyber-crime. Luckily, businesses can be protected from these scenarios with targeted cyber insurance. Let’s take a look at some of the reasons why this cover for your business is so important.

1. Cyber-crime continues to grow

Cyber-crime continues to grow and it’s increasingly posing a threat to businesses of all sizes. In fact, the Cyber Security Review estimated that cyber-crime costs the Australian economy up to $1 billion per year in direct costs. Just some examples of cyber-crime that your business could fall victim to include ransomware, spam, phishing scams, hacking and identity theft.

2. Existing insurance may not cover cyber attack

A lot of businesses mistakenly assume that cyber attack will be covered under their general business insurance. However, cyber insurance is a specific policy which will cover the unique risks which are associated with cyber-crime. If you’re not sure if you have the right insurance cover in place for cyber risks, speak with your insurance broker and they’ll be able to take a look.

3. Financial implications of a claim for your business

In many cases, a third party claim following cyber attack can be financially devastating for your business and the actual cost involved is difficult to predict. For example, if all your sensitive client data is breached then you could potentially face a number of claims. It’s not only the direct costs of third party claims you need to worry about – there’s also business interruption, drop in share price and loss of customer confidence.

4. Responsibility for sensitive client data

With so much data these days being stored on business computer systems, it’s easy to forget the fact that you’re responsible for a lot of sensitive client information. Personal information, such as credit card details, are a very attractive target for cyber criminals and you’ll likely be held responsible if a breach occurs.

5. Peace of mind for customers

It’s all about building trust with your client base and having a comprehensive cyber insurance policy in place shows that you take cyber security seriously and are aware of the risks involved. Cyber insurance should form part of your overall risk management strategy for preventing cyber-crime.

For cyber liability insurance Australia, speak to the experts at GSK Insurance Brokers. Our passionate team of brokers are dedicated to providing our clients with the best insurance cover at a competitive price and we have established relationships with top insurers to ensure the deal possible. We understand the unique cyber risks that your business faces and can deliver a tailored insurance package to suit your needs.

For tailored cyber liability insurance, speak with the team at GSK Insurance today on (08) 9478 1933.

October 31, 2018

By Graham Knight

Founder and Managing Director of GSK Insurance (established in 1981). Graham draws upon more than 50 years’ experience in the insurance industry, working in both insurance and broking across various private, public and government sectors in Australia.