When we think about insurance, we only think about materialistic tangible things. If we can touch it, then it can be insured. But what about the things that exist in another world? You will never be able to physically hold these items, but some of them hold just as much value as your house. Okay, now you’re probably thinking that you’re reading some sci-fi fantasy blog. Rest assured, you’re not. We’re talking about real insurance for real problems. To be more specific, Cyber Insurance.
But what is Cyber Insurance and how can it help your business?
As more businesses rely on technology every year, it creates more of an opportunity for a cyber-attack. Did you know that about three in five Australian companies experience a cyber breach every month? The numbers are growing and becoming quite alarming. Cyber insurance is here to help and protect business owners against computer hacking, ransomware, data theft and many other offences.
It’s weird to think that a cyber-attack can do more damage to your business than you might initially think. The risk varies but depending on the scenario, you might need to pay a costly fee for IT solutions to unlock and repair your systems. You might even be liable for the costs of reporting the breach, the costs to sort out legal claims and also replacing any funds that your customers or clients have lost. But it’s not just about the money. Your business reputation could be ruined, especially if you put your clients or customers personal information at risk.
So what does it actually cover?
For starters, you’re probably wondering if it will help cover all the costs associated with the situation. It all depends on your insurer but things like this will most likely be covered: Financial losses of your business, customer and client losses, and also any other third parties involved in the cybercrime. Some cases might include funding for crisis management and monitoring or even an investigation by a government regulator.
But what doesn’t it cover?
As with any insurance claim, there are always variables involved and deductible costs. The first thing to do is to speak with McLardy McShane and be aware of what will be covered and what won’t. And remember, your regular business insurance may not protect your business should it suffer a cyber-attack.
If you’re serious about your business and taking it to the next level, cyber-insurance may be a great way to protect yourself and everything involved, including your image.