Protect your business against the impact of cyber crime

In recent years there have been many reports of major cyber-attacks on a number of organisations across the globe.

There are many types of malicious software that are designed to corrupt data and breach privacy, and business owners and managers are responsible for doing all they can to maintain their systems to reduce the likelihood of this occurring. Privacy legislation introduced in March 2014 contains penalties of $340,000 for individuals and $1.7 million for companies that fail to meet their obligations and breach legislation.

These recent incidents and penalties for non-compliance highlight the importance of being vigilant regardless of what software or platform you are using. The following are good practices to keep in place to maintain the integrity of your system and data:

•    Ensure software updates are enabled.
•    Make sure you have installed virus protection software and that it is active.
•    Avoid opening emails from unknown sources.
•    Do not open email attachments from senders you do not know.
•    Backup your data regularly.

Cyber and Privacy Protection Insurance can help protect businesses from the financial impact of a cyber-attack or a privacy breach. Cyber Insurance offers a broad cover for wide variety of risks resulting from the use of technology including your use of the internet, email, intranet, extranet or your website. Some policy inclusions are listed below:

  • Business Interruption – Reimbursement of loss of profits, and necessary expenses incurred to maintain operation of the business as a result of the interruption.

  • Fines and Penalties – Reimbursement of fines and penalties as a result of breaching the privacy act.

  • Breach of privacy - Cover against breach of confidence and infringement of your customers’ rights to privacy.

  • Damage to your network or website - If you are hacked and your data is deleted or stolen, or if your network , system or website is damaged, insurer will pay the repair or replacement expenses.

  • Transmission of a virus – Cover for inadvertent transmission of a computer virus.

  • Third Party Liability - If you have mistakenly infringed someone’s copyright or published a defamatory statement on your website or in your email, including defamatory statements regarding your client or business competitor, the insurer will indemnify you against the sums you have to pay as compensation, including the cost of fines and penalties as a result of breaching the privacy act.

  • Cyber Extortion - A hacker may threaten to damage your website in return for a ransom. Insurer will indemnify you against the ransom paid.

In summary, Cyber insurance can't protect your organisation from cyber crime, but it can keep your business on stable financial footing should a significant security event occur.

For more information on how you can insure your business against cyber crime please contact our expert on 1300 242 136.

AB PhillipsCyber, SPASA