Debunking Cyber Security Myths for SMEs, Part 2

Misinformation is everywhere, especially regarding cyber security. This can cause SMEs to hesitate when it comes to shielding their business. Unravelling these myths is key to ensuring they understand the importance of Cyber Liability protection. That’s why we’re taking on three more common cyber security myths, offering clarity and truth in place of confusion.

Read Part 1 for more cyber security myth-busting.

“I work with an IT provider, so I’m good.”

Some SMEs do take cybersecurity seriously. Maybe you’ve contracted an IT provider to secure your systems. If that’s the case, you might think Cyber Liability insurance is unnecessary for your small business.

Any proactive steps taken to prevent cyber breaches should be applauded. But you should still understand that no system is foolproof. Think about it this way: large corporations spend millions to protect their networks from hackers, yet they still suffer major breaches. You’re likely spending much less than the big guys and relying on less sophisticated software and techniques.

The bottom line: For the cyber-savvy SME, Cyber Liability plugs the gaps between your existing cyber defences and human error (a significant cause of breaches in Australia). In fact, having cybersecurity measures may even get you a better premium from insurers.

“Aren’t I already covered for this?”

You might already have several insurance policies for your business. This may lead you to believe cyber liability coverage is included.

However, it’s essential to know exactly what your policies cover. Cyber Liability Insurance offers specific protections that might not be in your current plan. Understanding the specifics of the policy can help you better recognise its unique value to your business.

The bottom line: Understanding the difference between Cyber Liability and other common forms of insurance (like IT Liability, Public Liability, Professional Indemnity, BizPacks, etc.) can help you better identify how these policies help fill the cracks in your cover.

“It’s too expensive.”

As small business owner, you’re likely all too familiar with the challenge of working with razor-thin profit margins. So the thought of adding another insurance premium might seem overwhelming at first.

But consider the broader picture: Not only are cyberattacks relatively common for small businesses, but they can also be very expensive. The ACSC reports that the average cost of cybercrimes increased by 14% per incident in FY2021-22. This translates to over $39,000 per incident for small businesses and $88,000 for medium businesses¹.

The bottom line: Cyber Liability premiums may be a small price to pay compared to the cost of a cyberattack.

Step up your business’s defence against cyberattacks

Cyber threats are a reality, no matter the size of your business. So rather than getting caught off-guard when the unexpected strikes, consider Cyber Liability Insurance for your peace of mind. Get instant quotes with BizCover today, and safeguard your small business within minutes.

1. ACSC, Annual Cyber Threat Report, July 2021 to June 2022