4 essential tips for buying cyber insurance

Hacks, viruses, ransomware, or even clicking on the wrong link could bring a small business to its knees. During the 2021-22 financial year, the Australian Cyber Security Centre received 76,000 cybercrime reports—or one every 7 minutes.1 And these incidents aren’t cheap. The average cost per cybercrime was over $39,000 for small businesses.1

Cyber Liability insurance is one way to protect your small business against cyber threats that could cause costly interruptions, data breaches, or even force you to close up shop for good.

What is Cyber Liability Insurance?

Cyber Liability insurance covers losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach.

A Cyber Liability policy typically covers the following:

  • Data breaches
  • Losing customer data
  • Cyber extortion
  • Network security breaches
  • Forensic investigation into the cause or scope of a breach
  • Business interruption costs
  • Data recovery costs
  • Crisis management costs (to lessen the damage to your business’ reputation after a cyber event)
  • Loss and legal costs, including fines and penalties

Do I need cyber insurance?

Cyberattacks on large corporations, hospitals, and government agencies tend to make the news, but they don’t tell the full story of cyber security danger. These high-profile incidents might make it seem like only big businesses need to worry about getting hacked. However, small businesses may be more at risk of an attack for a few reasons:

  • They might think it can’t happen to them. No business is too small for hackers! Many cybercriminals prefer to hit several weaker targets than one large, well-protected one.
  • They may not be aware of the risks. Cyber threats are always changing. It can be hard for small business owners to keep up with all the ways that hackers could access their systems or information.
  • They’re already spread thin. You might be responsible for most, if not all, areas of running your business. Cyber security could fall through the cracks with so much else on your plate.
  • They often work with other businesses. Small business owners often rely on outside partners and suppliers to run their businesses. This could leave you open to data breaches and false billing scams.
  • They spend less on protection. Small businesses typically can’t afford the same sophisticated systems and measures to protect themselves that large corporations can.

Cyber Liability insurance can help you protect your small business against cyberattacks. If a breach, hack, or loss of data happens, your policy could help you recover and get back to business.

4 tips for buying Cyber Liability insurance

Thinking about getting a Cyber Liability policy for your small business but not sure where to start? Here are four quick tips to help you choose coverage:

1. Think about your risks

Every business is different, and how you work will likely impact what you’ll be looking for in a Cyber Liability policy. You may need to ask yourself questions such as:

  • Do I rely on the internet to do business? This includes activities like having a website and social media for your business, using email and apps to communicate with employees and customers, or using a point-of-sale system.
  • Do I store private data about my customers? This may include names, contact details, payment details, and other information that could be used to steal someone’s identity.
  • Do I work remotely? Working from home or on the go is normal for many small businesses, but it could also leave you open to cyberattacks.

2. Compare different policies

Just like small businesses, no two Cyber Liability policies are the same. You may want to compare quotes from different insurers before choosing one. This could help you find the best option for your small business in terms of what is covered and how much your premiums will be.

3. Understand your coverage

Reviewing a policy’s terms and conditions can help you understand exactly what is covered and what is not. Once you’ve chosen your Cyber Liability insurance, take a good look at the inclusions and exclusions. This could help you avoid the unwelcome surprise of thinking you’re covered only to discover you are not when you make a claim.

4. Take steps to reduce risk

Cyber Liability insurance can help your business get back to work after an attack but avoiding them in the first place is even better. Taking steps, like regularly backing up data and installing security updates, could help you prevent many cyber incidents. And since insurers look at your claims history when you buy and renew your insurance policies, reducing risk could help keep your premiums low.

Buy Cyber Liability insurance with BizCover

Sold on the idea of Cyber Liability insurance for your small business? Get covered today with BizCover! We’ve made it easy to compare quotes and buy a policy online in minutes.

Get a Cyber Liability policy today—no complicated paperwork, no dramas! Start now.

1. ACSC 2021-22 Report, 4 November 2022.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
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