Cyber Insurance

Many small and medium business owners mistakenly believe that their businesses are too small to attract the attention of cybercriminals. And, as the picture painted of cybercriminals is increasingly one of state-sponsored hackers looking to sabotage large organisations or steal information, small and medium business owners might think they’re safe from cyberattacks. Consequently, they don’t think cyber insurance is for them.

The reality couldn’t be any more different. In fact, small and medium businesses are a key target for cybercriminals precisely because they are often complacent, believing they won’t be attacked. This means they either elect not to invest significant resources in securing the business, or they don’t have the resources to invest. Either way, it creates a soft target for cybercriminals who can often create havoc for small and medium business owners.

Cyber insurance can cover your small or medium business for the losses you experience as a result of a cyberattack. However, it’s important not to rely solely on this emerging type of insurance but to also have a strong risk mitigation plan in place.

This includes strong cybersecurity tools as well as cyber insurance.

Since cyber insurance is an emerging area, it’s important to get the right advice. Speak with a NZbrokers member today to find out what cover is right for your business.

Cyber insurance broker

Cyberattacks can happen in many different ways. Sometimes, attackers lock up your business files and demand you pay a ransom to release them. In many cases, payment of the ransom does result in those files being restored but, in some cases, the cybercriminals make off with the money and leave the files encrypted, potentially paralysing your business.

Paying up is therefore no guarantee of safety. In fact, it can make life even more difficult because, once a small or medium business owner has paid, the cybercriminals often mark them down as easy targets to be returned to over and over again. This can see business owners paying ransoms in escalating amounts and frequency.

Small and medium businesses can also be targeted in sneakier ways. For example, it’s easy for hackers to create emails that look as though they’ve come from a person within the business; possibly even from you as the owner. Hackers send this spoof email to one of your employees, asking them to provide password or banking details, or requesting that they purchase iTunes gift cards and provide the details by return email. Your unsuspecting staff member complies and all of a sudden, your business is the victim of a complex scam that sees you lose significant amounts of money.

Regardless of the type of attack you suffer, the result can be the same. Lost money and a damaged reputation. However, you can mitigate the risk of a successful attack by taking out cyber insurance.

Because this is an emerging and complex area of insurance, it’s worth talking to a professional advisor to get the right policy for your organisation.

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:

  • find the best cyber insurance cover for your business’s needs
  • review cover from the broadest range of insurers
  • understand premiums and risk management
  • manage insurance claims for a better outcome.

*Talk to one of our independent brokers today to find out more. Click here to find the broker closest to you

Getting the right cyber insurance

As a small or medium business, it’s unlikely that you have spare resources to waste on the wrong cyber insurance policy. It’s important to start by understanding what the actual risk of a cyberattack would be for your business, then determine what level of risk you’re prepared to accept.

Working with a knowledgeable cyber insurance broker can help you get the right cyber insurance coverage for your business.

Here are six things to think about when it comes to cyber insurance:

1 Need as a small or medium business, you may face a higher risk than other types of business, so it’s important to put risk mitigation factors in place, including cyber insurance.
2 Budget while your budget for cyber insurance may be small, you could also be surprised at how affordable it is. And, if you have other protective measures in place, your premiums could be even lower. Like all types of insurance, it’s advisable to get the maximum coverage you can afford.
3 Risk it’s important to understand the risk your organisation faces. As a small or medium business, your risk level could be high. However, it’s important to balance the risk against the cost to decide what to insure and for how much.
4 Mitigation it’s not advisable to rely on cyber insurance to protect your business without also investing in strong cybersecurity measures. The stronger your cybersecurity measures, the lower your premium could be.
5 Third Parties don’t forget to take your partner networks into account. If you can access your partners’ networks or they can access yours, this could create a vulnerability that you’re not aware of. Make sure your cyber insurance policy covers you for losses associated with this.
6 Visibility It’s important to ensure you have visibility throughout your network so you can see where the risks are and so you can identify when someone tries to gain unauthorised access to your network.

If you’re not sure, get someone who is

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.

Contact one of our independent brokers today to find out more.

 

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