Cybercrime is one of the biggest risks for businesses today. Whether you’re a large corporation or an SME, it’s important to be aware of the consequences that can result from a threat to your cybersecurity.
In 2015, the Australian Government’s ‘Stay Smart Online’ initiative released a report discussing the cost of cybercrime to our small businesses. The average? An enormous $176,323 per attack.
It’s fair to assume that small to medium businesses aren’t prepared to lose this amount of monee, and in some cases the consequences could be irreversible to the business. So the natural option in the face of threats like this is to look into insurance. Cyber liability insurance is a great choice for those who are worried about their digital security.
But what are some examples of claims you can actually make?
1. Leaked customer information
If your database is hacked and your customers’ personal and financial information is leaked, this could potentially be a massive problem. Not only do you immediately lose the trust of your customer base, but they can see huge personal consequences too (e.g. people using their financial information for the wrong purposes).
2. If you get sued
Insurance won't cover you for every possible legal issue, but if you are (for example) sued over copyright infringements, a cyber liability insurance policy with multimedia liability cover should provide financial protection for this. This can help provide financial relief from legal fees or other costs.
3. A crashed website
If for some reason your site goes down and is unusable for a day, you could miss out on a lot of income. Having a broken website can be extremely damaging, especially if a large proportion of your business is online. You risk losing sales and alienating customers. Cyber insurance can pay out to cover lost funds and even in some cases, website repair costs.
Making a claim for cyber insurance is no different to the process of claiming for most insurance types, although it’s likely you’re claiming for a higher amount than usual which will mean the process can take longer. As with most insurance claims, you will need to fill out a claims form. You can typically find this online if you Google your insurer’s claim process.
The information needed will typically included personal and business information, as well as detailed recount of what happened and how it’s affected you. This usually means:
- A description of the incident
- The products or costs liable
- Property or people damaged
- Who is liable
- Whether there were any witnesses to the event
Following this, your insurer will contact you and provide you with further steps to process the claim
Cyber insurance is no substitute for having a well-secured environment. However, it's a useful addition to ensure that you're minimising risks to your business.