Why Do You Need Cyber Insurance?



Technology in the 21st century has opened up many possibilities for streamlining greater efficiency, production and processes for businesses. However, as life starts to transition rapidly into the digital world, so does the risk of cyber breach. So let’s discuss the importance of cyber insurance and its advantages.

In 2014, it was calculated that 1,131 cyber incidents were reported through the Australian Signals Directorate (ASD) – an Australian Government Intelligence Agency tasked with ensuring our information security. This figure was a 20% increase from the previous year and these statistics prove that as the move into digital and cloud-based services starts to gain momentum, so does the increased risk of cyber attacks.

Did you know that many major companies have in fact been hacked in the past? Familiar names and brands such as Nike, the FBI and in one now infamous incident, Sony Pictures. During this episode involving Sony Pictures, it was believed that North Korea had hacked the multi-billion dollar company and stolen vital information from the controversial movie ‘The Interview’ – a fictional movie on the assassination of the North Korean supreme leader. More recently, Australia’s Bureau of Meteorology (BOM) was also hacked, which had the nation questioning the Australian Cyber Security Centre.

Today, statistics show that 1 in 5 businesses are hacked, with 40% of this figure representing small-medium sized businesses. Ultimately, this then means there are three different types of businesses; companies that have been hacked and are aware of it, companies that have been hacked but are unaware and companies yet to be hacked. If your business suffers a cyber attack or breach, the following can be compromised:

    • Sensitive or confidential data stolen or revealed.
    • Software can get disabled or held to ransom.
    • Personal data of your customers can be stolen.
    • Share prices may decrease as stakeholders lose confidence within a company.
    • Lawsuits which may give rise to other liabilities.

You may be thinking, “It’s ok, I have the top of the line malware for my business, my IT provider said so”. Like fire insurance for your business and so many unforeseen events, even if you have the best software protection money can buy, you still run the risk of being compromised. Cyber insurance is the best way to protect your businesses online data and presence in the long run. Simply speaking, cyber insurance will cover your business for the situations which are listed above and many more, as opposed to having to foot the bill if you are relying solely on your existing software security.

Cyber insurance gives you the chance to know that your business, and the businesses you look after, are in safe hands when things go wrong. So whether you’re in business with aviation, agriculture, construction, marine, trades or property, Allsafe has a cyber insurance specifically tailored for you and your business. For more information check out our website or contact us for a free consultation.