Cyber security is a top risk management concern for Australian businesses, with eight in 10 organisations hit by ransomware. Research has also shown that small businesses are more likely to have poor security practices due to common misconceptions about any threats.

Small business needs to start by doing their bit in identifying and dealing with cyber risks in their quarters. This can be done by adopting ‘quick wins’ for small businesses, including providing securing portable devices, websites, and internet connection.

We outline the top four myths below.

Myth #1: Cyber coverage is just for business technology.

Cyber insurance covers ‘network and privacy liability’, so it’s not just about the data stored on your company computers. Cyber security policies typically cover costs associated with data breaches, business interruptions, forensic investigation, data recovery, and any legal costs such as fines or penalties resulting from a third party claim for data or network security breach against your company.

Myth #2: My general liability policy will protect my company.

General liability cover relates to third-party claims for bodily injury or property damage due to your company’s negligence. It generally won’t cover a third party’s financial loss.

Myth #3: Cyber insurance is unnecessary. We invest in IT security…

IT security won’t protect you from all risks of hacking or human error – the risk exposure remains. And hackers are one step ahead, often using artificial intelligence apps to write malicious code. Companies that don’t take proper care of customer data face increasing penalties under the Privacy Act.

Myth #4: We don’t collect personal data, so cyber insurance isn’t for us.

Think again. Ransomware can enter your business through funds transfer fraud, business interruption and system damage. They involve sensitive data your company might collect. Other examples include employee’s personal data, compromising emails and business-critical activities.

Your guide by the side

Cyber insurance is usually a stand-alone policy that fills the gaps in your other coverages. It offers breadth and depth, including access to incident response expertise. We are here to demystify the fine print about your best options and draw on our experience to fast-track your claims.

If you would like to know more about cyber insurance, please CLICK HERE or contact us for more information.