You Have Cyber Insurance, Now What?
Nowadays, businesses in Australia are more at risk of experiencing security breaches than ever before. With the numerous cyberattacks that occurred during the first half of 2019, there is no denying that the need for stricter security protocols is high. While you might feel safe, you should know that cybercriminals do not discriminate. No matter how big or small your business is, if they can find a way to use your information to earn money, they will do it, no matter how illegal or unethical it may be. This is why acquiring cyber insurance and complying with its terms is a must for every business.
Why Should You Get Cyber Insurance for Your Business?
Research shows that cybercrime is costing the Australian economy up to $1 billion annually in direct costs alone. If you acquire insurance to protect your home, car, phone and other properties, it only makes sense that you do the same for your business. This is especially crucial if you are dealing with a large amount of private and personal information. If you would like to learn more about how cyber insurance can protect your business, check out these five important questions and answers.
1. What Can I Get From Having Cyber Insurance?
According to a 2018 research, Australia is ranked fifth among the countries with the highest ratio of data breaches, with more than 50 million recorded data breaches against its 25 million population. This means that there is a major crisis in the country when it comes to data security. By implementing better data security protocols and acquiring cyber insurance, you get to secure your organization from any lasting damage in case a data breach occurs.
2. How Can I Make Sure I'm Complying With My Policy Terms?
Noncompliance with security requirements indicated in policy terms may reduce or even cause your claims to be completely declined. An IT audit will help you acquire the evidence needed to support full insurance claim payouts. Additionally, an IT audit will help you figure out what parts of your security protocols need improvements and consequently avoid cyberattacks. As long as there are people who are looking to make money out of other people’s information, the possibility of being a victim to these attacks are high. Lastly, an IT audit is useful if you are just about to acquire cyber liability insurance. It will help ensure that you can comply with the policy terms.
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3. Can My Insurance Company Help Handle Investigations for Me?
Managing the effects of cyberattacks can be stressful and chaotic. With a lot of private information in your hands, you and the people in your company should understand the responsibility of protecting these large quantities of data. You should put in a lot of effort to protect your business’ security and reputation. In case of a data breach, you can let your cyber insurance company handle the nitty-gritty parts of investigating the breach and finding out where the problem started.
4. Will My Cyber Insurance Cover Legal Expenses?
Apart from handling investigations, a cyber insurance provider will also cover all the legal expenses that may be incurred in case a data breach happens. In 2019, the costs of data breaches in Australia went up to an average of AUD 3.15 million from AUD 2.95 million in 2018. Legal fees alone can range from hundreds of thousands to millions, depending on the severity of the data breach. Therefore, you must understand the need for protecting your business data. In case of having lawsuits filed against you, rest easy knowing that your insurance policy covers your legal expenses.
5. Will My Cyber Insurance Include Errors and Omissions Coverage?
Your cyber insurance will also include errors and omissions policy. This will save your company and employees against claims of inadequate work, such as personal negligence or lack of security. Your cyber risk policy will protect all your assets and make sure that your interest as a business is preserved.
The Final Word
It’s important to keep your company safe from any cyberattacks by tightening your data security protocols. But in the case of a data breach, you can mitigate the effects of the situation. This is done by acquiring cyber insurance. You get to safeguard your investment and your employees and have investigations and legal fees covered. To make sure you can claim the complete amount covered by your policy, you can also consider an IT audit.
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