It’s been well noted that cyber risk has increased particularly during the global pandemic. And it’s not just large corporates facing the risk, so do small businesses need cyber insurance?
What’s the cyber risk facing small businesses?
In just 3 months there were over 13,000 cybercrime incidents reported to the Australia Centre for Cyber Security (ACSC). This equates to one case every 10 minutes. Cyber-attacks are an extremely lucrative form of criminal activity, which is fueling a dramatic increase in the number of attacks on Australian businesses of all sizes.
- 43% of reported data breaches involve small businesses (Verizon, 2019).
- The average financial loss per incident in Australia is $6,000 (ACSC, 2019).
- Nearly 50% of businesses do not spend more than $500 on IT security annually (ACSC, 2019).
Cost of cyber attacks on small business
There are a number of factors that may be impacted due to a cyber attack, including:
- The cost of ceasing operations
- Ransom payments
- Data restoration and hardware replacement
- Cost to investigate
- Third party damages
- Legal defence costs
- Statutory fines and penalties
- Brand and reputational repair
How can small business cyber insurance help?
Cyber insurance is designed to help protect your business from the financial impact of a computer hacking or a data breach. This risk exposure is not covered by a traditional business insurance policy. We’re part of Community Broker Network, and they’ve prepared a good piece on cyber risk and insurance, and what’s typically included here.
Get a small business cyber insurance quote
Contact us if you’d like to find out more or get a quote for your business.
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