Nowadays, there is a considerable need for business owners to protect their data against cyber-attacks as best as they can. Not only are their privacy regulations that may apply, a breach can be extremely costly.
Apart from purchasing cyber insurance, these tips will assist in reducing and preventing data breaches:
- Protect your servers, desktops, laptops, printers and mobile devices or any other device capable of storing information
- Follow the advice from your IT consultant, install high-grade anti-virus software. Is your anti-virus and anti-malware software operating properly and fully up to date?
- Effectively patch applications and to ensure that their technology remains supported by the developer.
- Train your staff. The best anti-virus is no help if a staff member opens a suspect email attachment.
- Data redundancy – Back up your data!
- Encrypt your data.
- Regularly test your systems and policies to ensure these are being followed and adhered to.
- Engage a professional to perform penetration tests.
- Buy cyber insurance to respond if something does get through and affect your computers.
In terms of purchasing cyber insurance, there are different cover options available. The most comprehensive cover is an individual policy that is designed to commonly cover:
First Party Claims
Cover includes your business costs associated with credit monitoring, cyber extortion, data restoration, forensic consultant, breach notifications, public relations and legal representation expenses.
Covers claims arising from reimbursement for lost profits and necessary expenses incurred to maintain business operations.
Third party claims
Covers costs relating to claims for compensation, investigations, fines and penalties (new privacy act), defence costs and legal representation expenses.
Premiums for individual Cyber policies start from around $700 – $1000 plus applicable charges depending on the level of cover and policy benefits. There are options with some insurers to have extensions included under other policies, such as under Management Liability and Professional Indemnity Insurance, premiums are generally around $200.00 plus charges however they provide very limited benefits and exclude business interruption. It’s recommended to obtain an individual policy suited to your needs so your business has the most comprehensive cover.
Disclaimer – “This material contains general information only and may not suit your particular circumstances. To decide if a policy is right for you please carefully read the relevant Product Disclosure Statement (PDS) and/or Policy wording. While we have exercised due care and skill in preparing this information, Optimum Insurance Services (Optimum) does not accept any legal responsibility or liability for negligence or otherwise to you or anyone else who seeks to rely on this information. This includes, without limitation, loss arising from a possible failure of the information to comply with statutory or regulatory requirements or the failure of the information to identify other terms and conditions beyond those considered in this document. You should obtain advice to ensure that your policy provides adequate cover for your circumstances.
“Optimum Insurance Services Pty Ltd is a Corporate Authorised Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services Licence No 240549, ABN 15 003 886 687.”