Many small business owners believe that hacking only happens to other companies, but this is far from the truth. The Australian Cyber Security Centre says that they receive one report of cybercrime every 10 minutes from small business owners, with estimated annual losses of more than $300 million. So if you do not have any protection in place, what do you need to consider to try and mitigate your risk?

Understanding Modern-Day Threats

Cyber attacks can come in many different forms. But once a malicious actor has gained access to your system, they can quickly cause havoc, leading to high costs and other problems.

Looking at Cyber Insurance Policies

Thankfully, there are cyber liability insurance products available from business insurance brokers. While these policies vary, they typically cover data recovery costs immediately after the incident. You may need to bring in specialists to investigate how the attack happened in the first place to avoid a repeat. There will be costs associated with this, which your insurance can typically cover.

Some criminals try to extort the company owner by threatening to compromise stolen data or expose customer records. While it is never a good idea to pay such ransom costs, discuss the risk with your insurance brokers to see whether that could be covered as well.

Additional Challenges

Unfortunately, government regulators take a dim view whenever client records are exposed to a third party in this way. If they find that your systems cannot adequately protect such data, you may be liable for penalties and fines, which could be substantial. Some insurance policies will cover such fines and the cost of a public relations expert. You may need to bring in this person to represent you to the media to try and manage the crisis as effectively as possible.

Defending Your Business

If you haven't already done so, look closely at your security and how you protect your data. Ensure that your employees are trained to perform their work to the best of their abilities and avoid any security mistakes. Remember, good preparation may be the best form of defence in an uncertain world.

How to Get Coverage

In addition to great preparation, there are ways to protect your organisation from cyber criminals who are becoming increasingly sophisticated and bold. To get the insurance protection that's tailored to your company, get in touch with a business insurance broker for their advice.