When it comes to cybercrimes, no business is too big or small. Every day, your business is exposed to risks of significant losses. And if you don’t take any action to protect your data now, you’re also risking the future of your business.
Hackers find small businesses as easy targets as owners are sometimes hesitant about investing in cyber insurance. Here are more reasons why a cyber insurance for a small business in Australia is important, now more than ever.
- Being a small business doesn’t give you immunity. Just because you’re running a small business doesn’t mean you’re already safe from cyber attacks. Hackers target businesses of all sizes. Without a cyber insurance, your business becomes more vulnerable.
- General insurance policies usually do not cover cyber crimes. Cyber crimes are rampant, yet insurance policies usually do not cover it. Its damages can as well be far-reaching, that it can put you out of business. Don’t wait for an attack to hit your company. Feel at ease that you’re covered should you fall victim to hackers.
- Your data is one of your biggest assets. Your database is crucial to your day-to-day operations. If it is compromised, not only will your business be affected, your customers are also likely to lose confidence in you. Customers trusted you with their data, you might as well do what you can to protect it. You can always acquire or rebuild physical assets but when data assets are lost, it will be difficult (and a lot costlier) to retrieve them.
- You might not have your own risk management team. Not all small businesses can afford to set up their own risk management team, as the big players do. With a competitive cyber insurance in place, you can, somehow, compensate for the loss of risk managers. Ask your insurance provider if they can introduce you to a company that’ll help secure your network. More often than not, they’re willing to do what they can to minimize the tendencies of you filing for a claim.
- You’ll be liable for lost credit card data. If credit card data of your customers are compromised, chances are you’ll be liable for it. Credit card penalties can easily add up even if yours is a small business. You’ll want to be sure you can manage all expenses without worrying about the lack of monetary funding.
- Even if you’re working with a web hosting agency, you’ll still be liable. Just because you have someone hosting your web data doesn’t mean you’re free from responsibilities in the event of a data breach. Familiarize yourself with all the legal responsibilities you will have should a cybercrime affect your business. Chances are you’ll figure out yourself that a cyber insurance is a non-negotiable investment.
- A cyber insurance can do a lot more for you. Apart from covering for operational losses, your insurance provider can also assist you on crisis communications. You’ll have to notify your customers about the breach or perhaps hire a team that will help you manage repercussions to your reputation. These can be financially-crippling. You need cash ready for this, as much as possible. You need to feel secure that after the incident, you’ll still be able to get back to your normal cash flow.
If your customers, suppliers, and business suppliers in Australia know that you’re keeping your business protected with a competitive cyber insurance, that’ll make them want to continue partnerships with you. They can be confident their business is taken care of as well.
Taking out a cyber insurance is only a fraction of the cost you’ll need should a cybercrime affect your business. Inquire about packages offered by providers. And discuss with them as well the budget you’re looking at.