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SME Cyber Insurance

Could you continue working if you were locked out of your computer? 

Cyber insurance (also known as cyber liability insurance) was unheard of 15 years ago. Today, it is a product needed by organisations and individuals who heavily rely on their digital assets. Consider what would happen if your computer was hacked and someone gained access to the private information of all your customers? If your turnover is over $3M you will now have to act as required by the mandatory data breach notification laws. 43% of all cybercrimes are targeted at SMEs.

60% of SMEs who experience a significant cyber breach go out of business within the following 6 months.

As an organisation you may collect names, residential addresses, financial information, medical records, credit card details, email addresses all of which are extremely attractive to hackers for the use of identity theft and fraud.

If your systems are compromised not only do you face financial repercussions for data that is no longer accessible along with potential legal and recovery fees, but you also face damage to your reputation for not safeguarding your clients’ data.

 

Aon’s Cyber Insurance for SMEs

Like most general insurance policies, cyber risk is determined by limits, turnover and industry. And while cover is comprehensive it doesn’t necessarily mean that it is expensive. In fact, for SMEs, cover can be acquired at a cost of a few hundred dollars per month.

A Cyber Attack can be extremely costly for you and your business. As exposure can vary from one organisation to the next, Aon can tailor a cyber-crime policy that reflects your risk landscape as well as your budget.

 

Do you need insurance? Do the comparison - 

Click the image to view the full infographic.

 

What could a cyber-attack on an SME look like? Some recent cases we've seen - 

Email Forgery

A local school had emails forged from a key person in the business with over $130,000 in funds transferred to false accounts.

Business Interruption

A small engineering firm subject to ransomware resulting in business interruption for 3 days.

Data Breach

An aged care facility experienced a significant data breach resulting in the release of hundreds of personal records. 

For personalised risk advice from a cyber insurance expert or to get a quote, contact us today.

Cyber Liability Insurance FAQ

What is Cyber Insurance?

Cyber-insurance is an insurance product to protect businesses and individual users from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Cyber risk is an exposure that no modern business can escape, and the financial impact of system interruption, privacy and cybercrime events are now felt within all industries.

Cyber-crimes include cyber-stalking, industrial espionage and information theft, fraud, extortion, identity theft, phishing scams and cyber terrorism. Cyber criminals use malware and viruses, computer and network hacking, denial of service attacks and fraudulent online scams to commit their crimes. It is relatively easy to access computers and networks inadequately protected by virus software or passwords. Hackers directly steal laptops, computers and mobile devices and take advantage of computers that are left unattended.

How can cyber insurance help?

Good cyber Insurance can cover you for a range of digital attacks and breaches and could provide you with much-needed resources to help identify, contain and recover from cyber-crime. Cyber-attacks can often prove very expensive with the average cost of an attack pegged at $276,323, and over half of those costs spent just on detection and recovery. 

Small to medium sized business which are often targeted for their perceived lack of security systems run out of business from the resources needed to recover from an attack and the loss of revenue from interruption to normal business operations. In fact, over 60% of small businesses who experience a significant cyber breach go out of business after 6 months.  

Depending on the insurance product you purchase, cyber insurance can cover you for various cyber-risks that your business faces. Aon consultants can advise the right cover for your needs based on your unique risk profile. 

What is the difference between PI and Cyber Liability Insurance?

Some of the key difference between Professional Indemnity Policies and Cyber Liability Insurance are:

  • Professional indemnity cover relates to the provision of a professional service, but information and cyber risks are often not a fundamental part of the professional service being offered.
  • Professional indemnity cover is negligence-based, and since the Protection of Personal Information Act is going to impose strict liability, Cyber risks could fall wide of the cover.
  • Fines and penalties are a very common exclusion under professional indemnity policies, whereas cyber insurance policies generally afford coverage to the extent insurable by law.

 

What does cyber insurance include?

Full inclusions will depend on the type of cover you choose, but most will include - 

  • Cover for ransomware attacks  
  • Cover for system repair  
  • Cover for privacy breach notification costs  

 

How much does cyber insurance cost?

The cost of cyber insurance varies dependant on the size and risk exposure of your business. At Aon, we can tailor a solution to best meet your unique needs and we can also provide you with protection in line with the mandatory breach legislation. 

It’s important to note that cyber insurance is a small annual cost when compared to the expenses of remedying a single cyber hack; consider the legal fees, data recovery costs, loss of reputation and potentially the need halt your business until the matter is resolved. On average 60% of small businesses that experience a cyber hack go out of business within six months.

 

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    • * Terms & Conditions apply. This policy is subject to eligibility criteria. Price and terms dependent on exposure risk and selected limits. For full policy details and for a copy of the wording please contact 1800 805 191. © 2017 Aon Risk Services Australia Limited | ABN 17 000 434 720 | AFSL 241141. This information is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered.

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