Probably one of the most drastic changes in the way we do business in the last decade is that virtually every company now has an online presence and in many cases companies are only trading online.
Business Insurance hasn’t always kept pace with the rate of movement of business risk into cyberspace. Most business insurances specifically exclude loss from electronic data and business interruption insurances will only cover interruption caused by physical loss or damage, usually this means a tangible item to be visibly damaged.
So, what are the cyber risks that are emerging?
Data Breach
Target in the USA recently had all their customer credit card data stolen causing not only loss for their clients but also remediation costs, investigation costs and loss of reputation. Closer to home it appears that a similar breach has occurred with the release of gift card information by Woolworths, this may not have even been hacking but rather simply a mistake, this could have been as easy as someone clicking reply to all – as everyone has done at least once.
If you hold customer data, especially credit card information this is a very real risk for your company
Ransom Ware
You receive an email that looks like it’s from someone you know, you click on the attachment, your computer locks and gives you a message saying that your files have been encrypted and to get them back you have to pay a fee to a hacker.
One solution for smaller business is to ensure your backups are offsite (preferably in the cloud) and simply throw away the useless computer. If they take down a larger network there is the cost involved of replacing expensive hardware and the lost time while the system is restored. Most business package insurance policies would not classify this as damage and wouldn’t respond.
Social Media
Having your products or services go viral can expose a business to worldwide advertising for almost no cash investment. While we all can live in hope of the upside of the speed of social media, a far more likely scenario is a negative viral effect. Employees all have access to their own social media accounts 24 hours a day 7 days a week and can make public comments with little or no thought which can have ramifications for the reputation of your company or at the worst expose you to legal action.
Next Steps
If you are concerned about cyber liability or just want a review of your commercial insurances, then contact John Simmons at 1300 227 123 or Click Here for further information.