Hackers. These are not just dodgy movie characters but real life people, doing real damage to businesses across the globe, including Australia. If you’re thinking your small business down under is of no interest to these criminals, think again. Every business with an online presence is at risk of a cyber attack and with cyber crime claiming 1,000,000 victims per day, it might be time to bite the bullet and get the right cover for your business.
Cyber Liability Insurance covers your business against the expense and legal costs associated with data breaches, which may occur after being hacked or from the theft or from loss of client information (you could even be covered for a data breach when leaving a laptop in a taxi). Expenses include the cost of business interruption, forensic investigation and data recovery, extortion (a fancy word for virtual hostage!) and crisis management costs to salvage your business reputation after a data breach from a cyber attack. The policy also covers the financially crippling costs of defending yourself, mandatory notification costs and other legal costs.
In a nutshell, your customer data is sacred. If you don’t protect it properly, your business may be fed to the wolves.
If you’re still not convinced your business may be at risk, here are the cold hard facts about doing business in today’s technically advanced world:
· Cyber crime costs Australian businesses $4.5 billion annually – yet it remains one of the least insured policy areas.
· ‘Unisys Security Index – Australia, 2011’ revealed that 85% of Australians would stop dealing with an organisation if their data was breached.
· The average cost of a data breach in Australia, from Symantec’s 2011 Cost of Data Breach Study, is $2.16 million.
· No business is safe and in November last year, computer hackers from a Romanian syndicate allegedly accessed the IT systems of 100 small Australian retail outlets and stole credit card details of over 500,000 customers.