The increasing sophistication and proliferation of cybercriminals means most Kiwi businesses can expect to be hit by a cyber incident at some point. In many cases, businesses have robust security measures in place to protect them from significant damage and interruption because of these attempted breaches. However, in some cases, the hackers will successfully breach the company’s defences and the consequences can be severe. Fortunately, there’s now an emerging area of insurance that can protect businesses from the losses that occur from cyberattacks. A NZbrokers member can help businesses choose the right cover for their needs.
A cyberattack is one where malicious criminals, sometimes known as hackers, attempt to breach an organisation’s security perimeter. They may do this for economic gain, by way of commercial sabotage, or simply to create mischief. Increasingly, hacking is becoming more like a business, with well-paid professionals accessing tools freely available on the so-called ‘dark web’. These hacking groups systematically target businesses for economic gain.
Another group of attackers are state-sponsored hackers. These are groups of cybercriminals financed and funded by nation-states to carry out cyber espionage or sabotage.
Most businesses have invested significantly in cybersecurity measures ranging from employee education, anti-virus and intrusion detection software to firewalls and other security technologies.
And, like most risks, you can also protect your business by insuring against a cyber incident.
To get the right coverage, you need to talk to the experts in cyber insurance.
NZbrokers is a network of insurance brokers with extensive experience in cyber insurance, and we have a broker close to you.
NZbrokers can help you:
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The cyber risks facing most organisations vary according to the investment to install protective measures and the effectiveness of those measures.
Similarly, the fallout from a cyberattack can range from mild inconvenience to business-crippling catastrophe.
For example, the Privacy Act requires that businesses protect private and personal information provided by their clients. If your business suffers a security breach and that personal information is stolen, you may be subject to a complaint which could result in the payment of legal costs, fines and damages.
Then, if your marketplace finds out you had a breach, you could suffer significant reputational damage. Your business may need to spend time addressing this either in the media or with clients directly, taking time away from positive interactions to focus on a negative incident.
Every cyberattack carries with it a significant risk of financial losses and reputational damage. Reducing the likelihood of a cyberattack and insuring your business against these losses is effective risk management.
Cyber insurance is a relatively new form of insurance, and understanding what policy is right for your business can be complex. Working with a knowledgeable cyber insurance broker can help make sure you get the cover you need.
|1||Need||Small businesses tend to be the most vulnerable to a cyberattack and, therefore, need cyber insurance the most.|
|2||Budget||Like most types of insurance, you should get the maximum amount of coverage you can afford. The cost of insurance may be less than you expect.|
|3||Risk||Before choosing a cyber insurance policy, it’s important to understand the actual risk your organisation faces, along with the potential fallout from an attack. For example, if the likelihood of a successful attack on a part of the network is relatively high, but the business cost of that attack is very low, then it may not be worth insuring that part of the network.|
|4||Mitigation||Prevention is always better than cure, and cyber insurance shouldn’t be the only thing protecting your business. Ensure you have strong cybersecurity measures in place, which may reduce your premium.|
|5||Third Parties||Many businesses either communicate with third parties or allow third parties to access their networks. If that’s the case, make sure your cyber insurance policy covers you for losses associated with this.|
|6||Visibility||Make sure you have full and regular visibility into your network so you can see where the risks are and, importantly, so you are aware the minute someone tries to gain unauthorised access to your network.|
Choosing the right cyber insurance provider for your business’s needs depends on a broad variety of factors. Working with an independent, transparent insurance broker like one in the NZbrokers network means you don’t have to spend time and resources investigating all the options and hoping you don’t miss something. Your broker will be able to find the right policy for you and you may even end up paying less than you think for your preferred policy.
Your broker will be able to find the right policy for you and you may even end up paying less than you think for your preferred policy.
Contact one of our independent brokers today to find out more.
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