Centrewest Insurance Brokers Newsletter
Hackers and your Cyber Liability
As our online presence for our personal and business activities continue to grow, so do the threats against us. Cyber theft and cyber fraud, industrial espionage, insider attacks, extortion, hacking are significantly on the rise across the world and Australia.
The motivation behind such attacks are as diverse and varied as the groups who commit them. Criminal gangs, disgruntled ex-employees, political focused hackers, hackers who want to cause damage for their own amusement, etc.
Prominent insurer Zurich have released a report entitled Beyond Data Breaches – Global Interconnections of Cyber Risk. The link to the report can be found at http://www.zurich.com/insight/cyber/cyber-risk.htm.
Some examples of common losses and disturbances are :-
Of course, prevention is better than cure and we strongly recommend you back up files and ensure these are not left on site (better still, consider other software options for backup), change passwords regularly, immediately lock out former employees, and consult with IT professionals to ensure all firewalls and security are up to date and active. Practice risk management with your systems, don’t leave this to chance.
- Hackers lock down your business website or customers data. They then request payment to unlock that data. Of course, if you pay, they will ask for more. If your data is not backed up, you have a serious problem on your hands.
- Hackers gain access to bank records, alter the BSB and Account numbers so that when a payment is made the funds are sent to an unknown source.
- Hackers gain access to your client files. Recent changes in the Privacy Act means that you are more responsible than ever for your customers or clients personal data. Should the theft of personal data occur and you are found to have insufficient computer security, fines can be imposed. Not to mention the significant IT costs associated with such an event.
Cyber Liability Insurance
Even with all these protocols the threat to your system is very real - all businesses, large and small are clearly under threat & attack. These criminals are constantly trying to find new ways to damage you and your business.
We strongly recommend you consider Cyber Liability insurance. There is a broad range of cover available which can include Business Interruption for your losses, E-Theft of funds, E-Threat or extortion, Privacy Notification, Crisis and Reward expenses. These cover expenses incurred by you and your business for your own costs.
Then there are the other party costs such as Disclosure Liability of third party information stolen, infringement of trademark or copyright, Reputational Liability, Liability resulting from system security failures that harm a third party system, Defence Costs for defending a claim by a government or regulatory agency.
The threat to your business is real. A combination of risk management & the correct insurance product will significantly reduce any potential losses or costs.
We urge you to talk to your Centrewest Account Manager to find out more information & to see the right product for you and your business.