What Is A Cyber Insurance Policy?

Do you know what a rootkit is?

Or a Trojan?

Any idea what a spear-phishing campaign is?

If the answer to any of these questions is no, reading this article is an excellent idea!

With the rise of online communications, more and more hackers are targeting organisations to steal their data or disable their systems and networks in a bid to ask for ransom.

And they use increasingly sophisticated techniques and software like the ones mentioned in our opening.

While there are ways to mitigate risks, your ultimate line of defence is a cyber insurance policy.

What Is A Cyber Insurance Policy?

Let’s first start by defining what cybercrime is.

Cyber crimes refer to criminal activities using computers or the internet. 

These include:

• Extortion
• Phishing scams
• Online scams
• Information theft
• Computer and network hacking
• Malware
• Cyberstalking
• Fraud

Cyber insurance is designed to protect your business against any threats associated with a digital working environment, including the crimes listed above. A comprehensive policy will support you with the costs of reputational and crisis management, network restoration, ransom payments, legal fees, or forensic investigations.

This type of policy is usually customisable, allowing you to craft bespoke protection based on your specific business needs.

Do You Need Cyber Insurance As A Small Business Owner?

37% of data breaches in 2021 resulted from a cyber incident. What’s more, data breaches have increased by a staggering 712% since 2018! 

Data is gold in this day and age, prompting hackers to attack an increasing number of organisations. 

The truth is that a data breach could cost you both money and your reputation and cripple your business. And unfortunately, the protection of your data is not covered by standard insurance policies. And that’s exactly why you need to consider investing in comprehensive cyber insurance.

Besides, the risk of cyber incidents is going up. With 92% of small businesses reporting being hit by a phishing attack and 80% of companies affected by a ransomware attack in 2021, an increase of 712% compared to 2018, the risk of your business being attacked is high!

Now, the average cost of a cyber attack on Australian businesses is $216,000. This is enough to send many small companies into bankruptcy.

Cyber insurance can protect you against the disastrous financial and reputational consequences of a cyber incident.

Where To Find The Best Cyber Insurance?

At upcover, we’re passionate about helping small business owners protect their business, financial assets, reputation, and hard work with tailored business insurance. That’s why we’ve recently introduced our Cyber & Privacy Liability Insurance. 

This comprehensive cover includes cyber incident response, cyber extortion, data, and application restoration costs, compensation for financial losses due to a cyber incident, and even indemnity for any business interruption costs.

If you would like to discuss this policy or need any advice or guidance, please don’t hesitate to contact us. We’d be happy to help!

And if you’re looking for other types of insurance policy for fool proof protection, don’t hesitate to check out our instant quote generator, where you can get an estimate on market-leading insurance in seconds! Simply enter your occupation and expected revenue to get started.