get small business cyber insurance

Does small business need cyber insurance?

It’s been well noted that cyber risk has increased particularly during the global pandemic. And it’s not just large corporates facing the risk, so do small businesses need cyber insurance?

What’s the cyber risk facing small businesses?

In just 3 months there were over 13,000 cybercrime incidents reported to the Australia Centre for Cyber Security (ACSC). This equates to one case every 10 minutes. Cyber-attacks are an extremely lucrative form of criminal activity, which is fueling a dramatic increase in the number of attacks on Australian businesses of all sizes.

  • 43% of reported data breaches involve small businesses (Verizon, 2019).
  • The average financial loss per incident in Australia is $6,000 (ACSC, 2019).
  • Nearly 50% of businesses do not spend more than $500 on IT security annually (ACSC, 2019).

Cost of cyber attacks on small business

There are a number of factors that may be impacted due to a cyber attack, including:

  • The cost of ceasing operations
  • Ransom payments
  • Data restoration and hardware replacement
  • Cost to investigate
  • Third party damages
  • Legal defence costs
  • Statutory fines and penalties
  • Brand and reputational repair

How can small business cyber insurance help?

Cyber insurance is designed to help protect your business from the financial impact of a computer hacking or a data breach. This risk exposure is not covered by a traditional business insurance policy. We’re part of Community Broker Network, and they’ve prepared a good piece on cyber risk and insurance, and what’s typically included here.

Get a small business cyber insurance quote

Contact us if you’d like to find out more or get a quote for your business.

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.

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