News and insights for Australian businesses

Protect Your Business From Cyber Threats

20 February 2017
Protect Your Business From Cyber Threats

Cybercrime is one of the leading risks facing Australian businesses, and the plumbing sector is not immune to potential attacks.

Any business that holds client information could be exposed to significant expenses resulting from a cyber-attack.

Government figures estimate that close to 700,000 businesses across Australia have fallen victim to cyber criminals, with the average cost of an attack costing businesses more than $275,000[1].

Cyber insurance policies can protect businesses from the financial consequences of cyber crime.

But before you invest in a cyber policy there are a number of things you need to know about cyber insurance.

1. Cyber insurance can cover you for business interruption costs

If your business has an online presence and relies on internet based software to trade, cyber insurance can cover you for a range of events. These include if your systems no longer operate as a result of a cyber-attack, or if you can't access them for a period of time. A Cyber policy may respond to reimburse the business for this interruption in income.

2. Cyber crime is on the rise and every business needs protection

According to the Australian Cyber Security Centre’s 2016 Threat Report, between July 2015 and June 2016 the federal government’s Computer Emergency Response Team (CERT) responded to 14,804 cyber security incidents affecting Australian businesses. In the previous year it responded to 11,073 cyber security incidents, which shows how cyber threats are on the rise[2].

Attacks can come from criminals, ‘hacktivists’ — political activists seeking illegal access to an organisation’s computer system — terrorists or state-sponsored hackers, or even disgruntled employees or customers.

3. Standard business insurance may not protect the business

Managers can erroneously assume other business insurance policies such as director and officer or crime insurance will protect the business should it suffer a cyber-attack.

While traditional insurance policies may respond to certain aspects of cyber breaches, most are not be specifically designed to protect companies from this threat.

4. Never assume your business is safe

It’s true certain industries are more prone to suffering a cyber-attack than others, especially businesses that retain personal information. However, no business or industry is immune. Cyber crime is now viewed by criminals as being just as lucrative as other types of crime and every company must be protected.

5. Cost-effective cyber cover is available

The cyber insurance market in Australia is very competitive, with a number of options available. Businesses with strong cyber controls in place and those that hold limited personal customer information are often able to obtain the most affordable cyber cover.

If you have any queries in relation to this or any other insurance product please don't hesitate to call the friendly team at Master Plumbers Insurance Brokers on 1300 300 511.

Disclaimer: This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy.  Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arrange insurance and are not an insurer. LCPA No: 17/004

[1] The Cost of Cyber Crime to Australia – StaySmartOnline.gov.au

[2] Australian Cyber Security Centre, 2016, Threat Report.

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