Cyber Insurance...is it for you?

You may have heard about cyber insurance but may not fully understand what it is or if your business needs it. With the increasing number of cyber-attacks on businesses and recommended changes in The Privacy Act, it is important to consider investing in cyber insurance. This type of insurance policy is designed to protect businesses from the damage and fallout from cyber-attacks and hacking - such as financial losses, reputational damage, and the loss of sensitive business and customer information.

It is recommended that companies purchase cyber insurance if the business:

• handles sensitive or confidential material, or hosts a public website that is interactive;
• uses third-party external companies to manage their database or provide an online shopping platform;
• owns or uses a website or application that they rely on for their business;
• has staff who bring or use their own devices to access shared networks; 
• is a prime target for ransomware or extortion due to their public presence or the sector they are in.

If your business falls under one or more of these categories, cyber insurance might be required.

Cyber insurance can be covered under a business insurance policy, but usually at a lower level of protection than standalone policies for cyber insurance. However, even within a business insurance policy, cyber insurance requires compliance from the business and their IT provider. This means that there are certain protocols that must be in place to ensure coverage.  Some examples of these protocols might include:

• training for staff;
• incident response;
• business continuity plans;
• authentication for anyone with remote access to company systems;
• an audit of third-party vendors and partners with access to your systems;
• network security;
• backup programs;
• password management procedures; 
• data management of current and old documentation.

If these protocols are not in place, your business may not be protected by cyber insurance. Therefore, it is important to contact your insurance provider to discuss your cyber security insurance needs. A cyber security assessment will help with the preparation of proof of compliance.

In conclusion, cyber insurance is an important consideration for businesses that handle sensitive or confidential material or rely on websites and applications for their business. It is important to ensure that your business is compliant with the necessary protocols to ensure coverage.  

Loyal I.T. Solutions is committed to providing information to businesses on the importance of stringent cyber security and can provide the necessary support to ensure that your business is protected from the potential damage of cyber-attacks. We are always available on 02 4337 0700 or reception@loyalit.com.au to discuss your critical cyber security needs and provide support and guidance necessary to ensure your business is protected.