“It wont happen to me” and “my IT department says we have adequate risk management in place” are typical responses from most small business owners when discussing Cyber insurance. Well here’s some sobering news: 400,000 of Australia’s 2.1 Million SME’s have experienced a cyber attack (Norton SMB Cybersecurity Survey).
If that doesn’t wake you up to consider taking a cyber policy, maybe this will:
From the 23rd of February 2018 the privacy Act 1998 has been amended to include Mandatory Data Breach Notifications Law. This law will make it compulsory for all data breaches relating to personal data to be reported to the Australian Information Commissioner (OAIC). A study by Clyde & Co found that 18% of the total costs incurred from a cyber breach were the notification costs. IBM’s security division places the average notification cost at $158 per record
The insured’s system was hacked resulting in 500 clients data being stolen including names, addresses, date of births and tax file numbers.
The insured incurred $45,000 in legal fees for the notification costs and breach response, $25,000 in credit monitoring costs and $28,000 in IT forensics costs. A total of $98,000 in different costs incurred as a result of the above incident. (Dual Australia)
HG Insurance Services Pty Ltd
A Corporate Authorised Representative (CAR) of Sphere Insurance Group.
Auth Rep No: 1252757, Australian Financial Services Licensee No. 478959.
35 Amalfi Drive,
Surfers Paradise, Queensland, 4217
PO Box 286
Isle of Capri, Queensland, 4217
Weekdays: 8:30am - 5:00pm
Weekends: By appointment
During claim: Anytime