Do small businesses have cyber risk?

do not enter cyber risk

Some of the scariest cyber attack headlines have been around large, well known companies. Think Yahoo in 2013, an attack which compromised three billion user accounts, or Marriott International in 2018 announcing that cyber thieves had stolen data on 500 million customers. Even this year in Australia, 20 years of persona data was stolen from Australian National University, start up superstar Canva exposed 139 million user details and even Instagram was hit by two privacy breaches in a week, resulting in 50 million users personal details being shared.

Cyber risk and small business

Australians are reporting incidents of cybercrime about every 10 minutes (more than 13,500 reports since July), according to the Australian Cyber Security Centre.

With this increase, there needs to be a corresponding increase in cyber security, particularly for small businesses. According to a 2019 report, cyber criminals have shifted their focus, targeting more small businesses, resulting in a 424% increase in breaches from 2017.

What can you do to protect your small business from cyber risk?

Cyber security is all about protecting your technology, information and data (especially data related to privacy) from accidental or illicit access, corruption, theft or damage. But the good news is that there are many things you can do to help manage your risks.

3 steps to protect your small business from cyber risk

  1. Awareness – According to Chubb’s 2019 Cyber Risk Survey, only 31% of employees get annual training on cyber security. Don’t take for granted that your team knows how to spot a phishing scam or knows not to open attachments unless they are really sure it’s legit (especially when they can appear to come from someone they know but perhaps the email address is a bit off). Make cyber education a priority in your business – start at induction but ensure it’s also part of your ongoing agenda.
  2. Maintenance – This is the seemingly simple stuff but is often where businesses get tripped up – maintaining good password hygiene (not using the same password for everything, enabling two factor authentication where possible, not sharing passwords) and also ensuring up to date antivirus and regular file and email back ups. .
  3. Test and protect – One really strong step your business can take is to hire an expert firm (sometimes known as an ethical hacker) to actually test your cyber security, and help you identify gaps. Of course none of these steps is foolproof, as cyber risk evolves quickly, so that’s where your insurance safety net plays its part to protect your business.

Do I need cyber insurance?

Cyber liability insurance is basically the safety net as incidents can and do happen even if you follow all of the steps above. Cyber insurance (according to Chubb) is designed to cover:

  • Business interruption loss due to a network security failure or attack, human erros or programming errors
  • Data loss and restoration including decontamination and recovery
  • Incident response and investigation costs, supported by a 24/7 multilingual incident reporting hotline and on-demand vendors
  • Delay, disruption, and acceleration costs from a business interruption event
  • Crisis communications and reputational mitigation expenses
  • Liability arising from failure to maintain confidentiality of data
  • Liability arising from unauthorised use of your network
  • Network or data extortion / blackmail (where insurable)
  • Online media liability
  • Regulatory investigations expenses

We can talk to you about what kind of cyber insurance solution might be right for your business – contact us or give us a call on (08) 8582 1277 for a free, no obligation chat and quotation.

General advice warning

The information above may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information.

Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.

What’s the difference between Directors’ and Officers’ Insurance and Management Liability?

management liability insurance, directors and officers insurance, financial lines insurance

Just ten years ago, less than one percent of small or medium sized businesses had any type of management liability insurance or directors' and officers' insurance (these are considered financial lines insurance). Now, and with more and more companies facing litigation in connection with management risks and exposures, management liability insurance is now considered a ‘must have’ for Australian businesses.

Read more

Travel Insurance FAQs

travel insurance, do I need travel insurance, managed insurance solutions, adelaide, south australia

One of the most frequent types of questions we get as insurance brokers is around travel insurance.   

So we decided to create a checklist of the more common scenarios that clients might be wondering about - check it out!

Read more

Innovation in Travel Insurance

travelcard, travel insurance, australia

Do you have a good understanding of travel insurance, or do you find it confusing and a bit of a hassle? We could have good news for you. There’s a relatively new option on the market, TravelCard which is a real-time travel insurance option. AND, MIS can help organise the TravelCard insurance solution for you!

Read more

7 key types of insurance your small business should consider

food truck, small business insurance, adelaide, south australia

As a small business owner, you know your business is you and your family's livelihood. Protecting it properly essentially helps to protect your financial future and provides you peace of mind so you can focus on growing your business. The risks you face come in a wide variety - some of which you can mitigate, while others are unpredictable and unpreventable.

These events could cause damage to your ability to operate, or your property, or worse, to people. Many small businesses won't financially survive a significant event with only the resources on hand, and that’s where insurance is designed to function as your safety net.

Read more

Landlord and renters’ insurance – is it necessary?

landlord insurance, strata, tenant insurance, renters insurance, south australia

Did you know that if you own a rental or investment property you may need a different insurance solution to your normal home and contents policies?

And renters/tenants - did you know that your home and contents are not likely to be covered by your landlord's insurance solution?

If the answer is no to either of these questions, read on and make sure you have a chat to your insurance broker about your situation to ensure you don't have gaps in your insurance solution.

Read more

Risk Management & Insurance in a Challenging Wine Harvest Season

grape growers, winemakers, vineyard, insurance, south Australia

We've all experienced some side effects of the recent heatwave across our great state - sleepless nights, occasional power outages as our power grid struggles to keep up with our air conditioners, cars, people and animals overheating and getting sunburned... but did you know grapes could get sunburned, too?

With some record breaking warm weather, there are additional risks that the vines could die or grapes can shrivel prematurely (the cells inside the grape start to die, reducing the grape's capacity to hold water) or burn in the hot sun.

Read more