As technology advances, cybercrime is becoming more sophisticated, and cyberattacks frequently target frequently targeting small businesses.
The risk is high for Australian SMEs. Many only are only paying $500 on cybersecurity annually despite the average loss being $63,500 per cybercrime incident.
With more businesses relying on technology and the internet to conduct their operations, the need for robust cyber insurance policies is greater than ever before.
“Cyber insurance is increasingly becoming essential for small businesses in today’s digital age,” Jane Mason, Head of Product, Channels and Risk at small business insurance service BizCover, says. “This is why the bolstered cyber insurance offering from BizCover is great news for Australian small businesses.”
Three leading Australian insurers
In response to the high-profile attacks in the second half of 2022, BizCover launched Chubb’s cyber policy in December to meet the growing demand.
“We were seeing 100 per cent annual increases in the number of enquiries about Cyber Liability insurance since the attacks, so we were extremely pleased to be in a position to support businesses with our new and enhanced offering,” Mason says.
The new cyber insurance product covers a wide range of risks, including privacy and security liability, and business interruption cover among many other safeguards.
The platform was also bolstered by updating the cyber insurance products of current insurers AIG and Dual.
“It’s been an overwhelming success. We have seen a further 40 per cent increase in enquiries about cyber insurance since December,” Mason says.
One of the barriers that stop small business owners from getting cyber insurance is price and coverage.
Fortunately, the BizCover platform has annual Cyber Liability policies starting from $487.50 and caters to a broad list of occupations, including:
- Professionals
- Trades
- Services
- Retail
- Hospitality.
Is your small business at risk of cybercrime?
With major corporations grabbing the headlines, some small business owners may think their humble operation is not a target.
Mason says this could be a costly assumption to make.
“If your business uses PoS devices, emails or has online systems to manage business or you handle important data that could be compromised, then you may be at risk of being a target of cybercrime,” Mason says.
What cyber risks are covered?
While the coverage for each policy on the platform differs, Cyber Liability insurance generally includes cover for expenses and legal costs relating to the following:
- Data breaches
- Theft or loss of client information
- Business interruption costs
- Forensic investigation
- Data recovery
- Extortion
- Fines and penalties
- Crisis management costs (to restore your reputation after an attack or data breach)
- Legal costs from any ensuing civil action taken against your business.
The insurers also offer optional extension covers such as Contingent Business Interruption, Social Engineering, and Cyber Fraud.
“The risk of cybercrime is a moving beast and we wanted to deliver products that help cover small businesses from a broad range of risks,” Mason says.
The bottom line
Overall, BizCover’s new cyber insurance offering is great news for small businesses.
Don’t wait any longer. While there are many perks to being your own boss, protecting your business from cybercrime can get quite dramatic.
Luckily with BizCover, sorting out your Cyber Liability insurance doesn’t have to be. Visit bizcover.com.au to compare quotes or give us a call today – no dramas!
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769.
